Q. 64.3( 3 Votes )

What are the harmful effect of MNCs to a host country?

Answer :


The presence of MNCs can also be harmful to host countries. This is because MNCs often use host countries to expand their production at a cheaper cost. Then, they sell the products that are made under their own brand name at enormous profit to themselves. So they have massive control over all aspects of production as well as distribution. This can be very harmful for the host country as it results in draining of their own resources and can be considered a form of exploitation of the host country by the MNC.


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