Question

2. MNCs use workers for their own interests and advantages.' Do you agree? justify.​

Answer 1

Explanation:

Taxes and Other Costs – Taxes are one of the areas where every MNC can take advantage. Many countries offer reduced taxes on exports and imports in order to increase their foreign exposure and international trade. Also countries impose lower excise and custom duty which results in high profit margin for MNCs.

The potential benefits of MNCs on host countries include:

Provision of significant employment and training to the labour force in the host country.

Transfer of skills and expertise, helping to develop the quality of the host labour force.