Which of the following are benefits of a multinational corporation opening an operation in a less-developed country? Choose all that apply. a. When an international company enters a developing nation, it brings jobs and money. b. Lower labor costs caused by lower wages lead to lower overall production costs. c. When a multinational company moves into a developing nation, local producers benefit from the extra money in the country. d. Opening operations in a developing country allows the company to circumnavigate tariffs in the nation where it builds its factory.
| a. |
When an international company enters a developing nation, it brings jobs and money.
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| b. |
Lower labor costs caused by lower wages lead to lower overall production costs.
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| c. |
When a multinational company moves into a developing nation, local producers benefit from the extra money in the country.
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| d. |
Opening operations in a developing country allows the company to circumnavigate tariffs in the nation where it builds its factory.
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MNCs are normally bigger and more useful than homegrown firms, and are generally ready to put resources into neighborhood markets. MNCs in numerous nations are assuming a significant part in purchasing new advancements, yet in addition in facilitating new firms through hatchery programs. Yet, they can accomplish more: they can put on a greater scale in innovation new companies connected with their line of business. Here, new businesses in agricultural nations can benefit colossally, not just from the accessibility of new wellsprings of financing, yet in addition from working inside the overlay of a bigger and more useful firm with a record of putting intensely in innovative work (R&D) and development. All the while, MNCs can now reevaluate a portion of their corporate innovative work endeavors by putting resources into neighborhood new companies.
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