Q.Explain the merits of MNCs to a host country like India.

(a) MNCs bring foreign capital, advanced technology, employment, higher exports/forex and better-quality goods. (b) Railways suit heavy long-distance goods, are cheap for such traffic, safe and dependable, have large capacity, and aid national integration.

This is a Part-IV OR-choice; both alternatives are answered in full.

(a) Advantages of MNCs (any 5)

Multi National Corporations operate in several countries and bring the following benefits to the host country:

1. Inflow of foreign capital — MNCs invest large amounts of capital, supplementing the host country's domestic savings and investment.
2. Advanced technology — they bring in modern, sophisticated technology, machinery and production methods.
3. Employment generation — their operations create large-scale direct and indirect employment.
4. Increase in exports and foreign exchange — by producing and exporting goods, they help earn valuable foreign exchange for the host country.
5. Better-quality goods — consumers get a wider choice of good-quality, internationally competitive products.
6. (Also) Development of ancillary industries and transfer of managerial and marketing expertise, raising the standard of living.

(b) Advantages of Railway Transport (any 5)

Railways are a major mode of land transport. Their advantages:

1. Suitable for long distances and bulky goods — railways can carry heavy and bulky goods over long distances conveniently.

2. Cheaper for heavy, long-haul traffic — cost per unit is low when heavy goods are moved over long distances.

3. Safe and dependable — rail transport is safe and regular, and is largely unaffected by weather conditions such as rain.

4. Large carrying capacity — a train can carry a very large quantity of goods and passengers at a time.

5. Speed over long distances — it is faster than road transport for long journeys.

6. (Also) It promotes national integration and industrial and agricultural development by linking distant regions.