- Name the form of organizing public enterprises funded directly from the government treasury. State its 3 merits
- Explain by giving 4 reasons how multi-national corporations are considered harmful to the developing countries.
- “Multi-national companies are a mixed blessing to the developing countries.’’Comment on this statement.
MNC's has following benefits:
* MNC's provide foreign direct investment by setting up subsidiaries in developing countries.
* MNC's spends on research and development, which help developing countries to get modern technology.
* Entry of MNC's increase employment opportunities in host country.
* MNC's help in increasing competition and encourage international trade.
MNC's has following demerits:
* MNC's tries to gain monopoly which enable them to make excess profit, which makes domestic industries financially weaker and less competitive.
* MNC's sells their products at high prices and exploit consumers.
* MNC's tries to maximise their profit against the national interest of countries.
* MNC's exploit resources of host countries which result in degradation of the environment.
MNC's has their advantages as well as disadvantages, therefore MNC's are a mixed blessing to the developing countries.
Regards
* MNC's provide foreign direct investment by setting up subsidiaries in developing countries.
* MNC's spends on research and development, which help developing countries to get modern technology.
* Entry of MNC's increase employment opportunities in host country.
* MNC's help in increasing competition and encourage international trade.
MNC's has following demerits:
* MNC's tries to gain monopoly which enable them to make excess profit, which makes domestic industries financially weaker and less competitive.
* MNC's sells their products at high prices and exploit consumers.
* MNC's tries to maximise their profit against the national interest of countries.
* MNC's exploit resources of host countries which result in degradation of the environment.
MNC's has their advantages as well as disadvantages, therefore MNC's are a mixed blessing to the developing countries.
Regards