Choose the given statement is True/False

Local businesses do not get certain benefits when they work in partnership with the MNCs.

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True

False

answer is B.

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Detailed Solution

The given statement is not True.
Multinational companies own and produce in more than one nation. They set up businesses in countries where they can minimise their cost of production. This will help them to maximise their profits. Multinational corporations help local businesses to grow as well. When multinational corporations start production in a new country, they bring new production techniques and advanced technology, which the local companies can also adapt. This helps the local businesses to improve their production and earn higher profits. Local businesses will also have to share their resources in case of a partnership. But it is beneficial for them altogether.
The correct statement should be that local businesses also get certain benefits when they partner with the MNCs.

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