Question

26.2. Why do MNCs follow this approach?​

Answer 1

The industry gets the latest technology from foreign countries through MNCs which help them improve on their technological parameter. R&D – MNCs help in improving the R&D for the economy.MNCs help in breaking protectionism and also helps in curbing local monopolies, if at all it exists in the country.

Answer 2

Explanation:

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Technology – The industry gets the latest technology from foreign countries through MNCs which help them improve on their technological parameter. R&D – MNCs help in improving the R&D for the economy. ... MNCs help in breaking protectionism and also helps in curbing local monopolies, if at all it exists in the country.

Advantages of MNCs

Specialisation in production. The scale of many industries means firms split production into different countries. ...

Outsourcing. ...

Economies of scale. ...

Tax avoidance.

Employment of skilled labour.

Wider consumer base.

Evaluation.