Question

8 "MNCs often opt for foreign
collaborations to expand and diversify. But
there foreign collaborations have given rise to
growth of monopolies and concentration of
power in few hands". Comment.​

Answer 1

Answer:

ᴇɴᴛʀʏ ᴏғ ᴍɴᴄs ɪɴ ᴀ ᴅᴏᴍᴇsᴛɪᴄ ᴍᴀʀᴋᴇᴛ ᴍᴀʏ ᴘʀᴏᴠᴇ ʜᴀʀᴍғᴜʟ ғᴏʀ sᴍᴀʟʟ-sᴄᴀʟᴇ ᴘʀᴏᴅᴜᴄᴇʀs ᴡʜᴏ ᴀʀᴇ ɴᴏᴛ ᴀʙʟᴇ ᴛᴏ ᴄᴏᴍᴘᴇᴛᴇ ᴡɪᴛʜ ᴛʜᴇᴍ. ᴍɴᴄs ʙᴜʏ ᴜᴘ ʟᴏᴄᴀʟ ᴄᴏᴍᴘᴀɴɪᴇs. ᴛʜᴇ ᴍᴏsᴛ ᴄᴏᴍᴍᴏɴ ʀᴏᴜᴛᴇ ғᴏʀ ᴍɴᴄs ɪɴᴠᴇsᴛᴍᴇɴᴛs ɪs ᴛᴏ ʙᴜʏ ᴜᴘ ʟᴏᴄᴀʟ ᴄᴏᴍᴘᴀɴɪᴇs ᴀɴᴅ ᴛʜᴇɴ ᴛᴏ ᴇxᴘᴀɴᴅ ᴘʀᴏᴅᴜᴄᴛɪᴏɴ.

ᴍɴᴄs ᴡɪᴛʜ ʜᴜɢᴇ ᴡᴇᴀʟᴛʜ ᴄᴀɴ ǫᴜɪᴛᴇ ᴇᴀsɪʟʏ ᴅᴏ sᴏ. ᴛʜᴇ ʟᴀʀɢᴇ ᴍɴᴄs ʜᴀᴠᴇ ᴛʀᴇᴍᴇɴᴅᴏᴜs ᴘᴏᴡᴇʀ ᴛᴏ ᴅᴇᴛᴇʀᴍɪɴᴇ ᴘʀɪᴄᴇ, ǫᴜᴀʟɪᴛʏ ᴀɴᴅ ʟᴀʙᴏᴜʀ ᴄᴏɴᴅɪᴛɪᴏɴs ғᴏʀ ᴛʜᴇ sᴍᴀʟʟ ᴘʀᴏᴅᴜᴄᴇʀs ᴏғ ᴏᴛʜᴇʀ ᴄᴏᴜɴᴛʀɪᴇs.

ᴛʜᴇ sᴍᴀʟʟ ɪɴᴅᴜsᴛʀɪᴇs ɪɴ ɪɴᴅɪᴀ ᴇᴍᴘʟᴏʏ ᴛʜᴇ ʟᴀʀɢᴇsᴛ ɴᴜᴍʙᴇʀ ᴏғ ᴡᴏʀᴋᴇʀs ɪɴ ᴛʜᴇ ᴄᴏᴜɴᴛʀʏ ɴᴇxᴛ ᴏɴʟʏ ᴛᴏ ᴀɢʀɪᴄᴜʟᴛᴜʀᴇ. sᴇᴠᴇʀᴀʟ ᴏғ ᴛʜᴇsᴇ ᴜɴɪᴛs ʜᴀᴠᴇ sʜᴜᴛ ᴅᴏᴡɴ ᴅᴜᴇ ᴛᴏ ᴛᴏᴜɢʜ ᴄᴏᴍᴘᴇᴛɪᴛɪᴏɴ ʙʏ ᴍɴᴄs. ᴀs ᴀ ʀᴇsᴜʟᴛ, ᴍᴀɴʏ ᴡᴏʀᴋᴇʀs ʙᴇᴄᴀᴍᴇ ᴊᴏʙʟᴇss. ᴛʜᴇsᴇ ᴅᴀʏs ᴍᴏsᴛ ᴇᴍᴘʟᴏʏᴇʀs ᴘʀᴇғᴇʀs ᴛᴏ ᴇᴍᴘʟᴏʏ ᴡᴏʀᴋᴇʀs ғʟᴇxɪʙʟʏ.

sᴏ, ᴛʜᴇ ᴡᴏʀᴋᴇʀs’ ᴊᴏʙs ᴀʀᴇ ɴᴏ ʟᴏɴɢᴇʀ sᴇᴄᴜʀᴇ.

ᴛʜᴜs, ɪᴛ ᴄᴀɴ ʙᴇ ᴄᴏɴᴄʟᴜᴅᴇᴅ ᴛʜᴀᴛ ᴍɴᴄs ᴏғᴛᴇɴ ᴏᴘᴛ ғᴏʀ ғᴏʀᴇɪɢɴ ᴄᴏʟʟᴀʙᴇʀᴀᴛɪᴏɴs ᴛᴏ ᴇxᴘᴀɴᴅ ᴀɴᴅ ᴅɪᴠᴇʀsɪғʏ.