Question

Entry of MNCs in a domestic market may prove harmful for:- (a) all large scale producers (b) all domestic producers (c)all substandared domestic producers. (d) all small scale producers.​

Answer 1

Answer:

Entry of MNCs in a domestic market may prove harmful for

(c)all substandared domestic producers.

Answer 2

Answer:

(c) Entry of MNCs in a domestic market may prove harmful for all substandard domestic producers.

Explanation:

• While the presence of MNCs provides consumers with more options and higher-quality products, it can be detrimental to local sellers who cannot afford to produce at the same level as the MNCs.
• As consumers are offered better deals by the MNCs, local producers, particularly those who produce lower-quality products, are left floundering.
• While the larger domestic producers can cope better, the smaller ones simply lack the resources to compete with the MNCs and are often forced out of the market or forced to adapt to the lifestyles of a much smaller portion of the consumer base.
• As a result, the entry of MNCs into the domestic market has both positive and negative consequences. As a result, option C is the proper response.