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

Explanation:

Entry of MNCs in a domestic market may prove harmful for:- (c) all sub stranded domestic producers

Answer 2

Entry of MNCs in a domestic market may prove harmful for C. All substandard domestic producers.

Meaning of MNC's:

• Multinational Corporations (MNCs) is an organisation that owns and control the production of goods and services in at least two countries.
• MNCs have a positive effect on the economy of their home countries.

Effects of MNCs in domestic markets:

1. A. Large Scale producers: MNCs do not have a harmful effect on large scale producers as these producers are financially stable and thus don't get threatened by the MNCs.
2. B. Domestic producers: Domestic producers may face challenges once MNCs enter the market, but since they already have their consumers, they don't get threatened.
3. C. Substandard domestic producers: Because of the vast economic power that MNCs have, many sub-standard domestic producers go into losses.
4. D. All small scale producers: Since MNCs enter into Tier 1 cities, small scale industries that are primarily set up in tier 2 and 3 cities don't face much of a challenge.

Thus, C. all sub-standard domestic producers in a domestic market can be affected terribly once MNCs enter the market.