Question

effect of MNCs on a developing country like India​

Answer 1

It is the giant multinational corporate firms (MNCs) which spend a lot on thedevelopment of new technologies which can greatly benefit thedeveloping countries by transferring the new technology developed by them. Therefore, MNCs can play an important role in the technological up-gradation of the Indian economy.

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Answer 2

Promotion of Foreign Investment:

MNCs can bridge the gap between the requirements of foreign capital for increasing foreign investment in India. The liberalised foreign investment pursued since 1991 allows MNCs to make investment in India subject to different ceilings fixed for different industries or projects.

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