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Question 15 of 16

Q.State any four merits of MNC's to host country.

Yanam BieapBIEAP AP Intermediate (1st Year) Commerce Board 2024Subjective· 5mImportance★★★★★est
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MNCs benefit the host country by bringing in foreign capital, transferring modern technology and managerial skills, creating large-scale employment, and raising production, exports and the availability of quality goods — along with contributing to government revenue and the overall economic development of the country.

Merits of MNCs to the Host Country

  1. Inflow of foreign capital. MNCs bring large amounts of foreign investment into the host country, supplementing its scarce domestic capital for industrial development.
  2. Advanced technology and skills. They introduce modern technology, research, improved methods of production and managerial expertise, which raise efficiency and quality.
  3. Employment generation. By setting up factories and offices, MNCs create large-scale direct and indirect employment and help in training the local workforce. …

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