Question

Evaluate the role of MNCs in the economic development of country

Answer 1

Multinational companies play a vital role in the economy of a country in modern world since many years.

These companies promote the growth of trade due to the bulk investment of foreign capital in a country.

The direct foreign investment in the industrial sector reduces the amount of commercial debt of a country.

The knowledge of the latest technologies are transferred with the research wings of these multinational companies, benefiting the small local industries.

Answer 2

Answer:

Role of MNCs in the economic development:

i. MNCs place order for production with small producers

ii. MNCs are setting up partnerships with local companies.

iii. They are interlinking markets all over the world.

Explanation: