Host Countries Sometimes Complain About the Presence of Multinational Firms

question 3

Multiple Choice

Host countries sometimes complain about the presence of multinational firms. These complaints include all of the following except

• A) MNCs may dominate the local economy.
• B) MNCs may export jobs to other countries.
• C) MNCs fail to market products or services needed in the local economy.
• D) MNCs may fail to transfer their most advanced technology.
• E) MNCs fail to help domestic firms develop.

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Definitions:

Circular-Flow Diagram

A graphical representation of the economic system illustrating the circulation of money between households and companies through various markets.

Market

A forum where buyers and sellers come together to exchange goods, services, or information.

Goods and Services

Goods and services encompass all the physical items and intangible benefits that are produced and consumed to satisfy human wants and needs.

Factors of Production

Factors of production are the inputs used in the production of goods or services in the attempt to make an economic profit, including labor, capital, land, and entrepreneurship.