Multinational Corporations in Developing Countries

What is one of the main advantages of multinational corporations in developing countries?

• They reduce the need for local businesses.

• They increase the cost of living.

• They monopolize the local market.

• They provide an inflow of capital.

According to the Harrod-Domar model of growth, what is important for determining the level of economic growth?

• Decrease in foreign aid

• Increase in local taxes

• Reduction in population

• Inflow of capital from abroad

What is one of the disadvantages of multinational corporations in developing countries?

• They improve local infrastructure.

• They diversify the economy.

• They provide high-paying jobs.

• They can cause environmental costs.

Why might multinational corporations employ skilled labor from other economies?

• To increase local employment

• To avoid local taxes

• To ensure high-quality work

• To reduce costs

What is a potential environmental impact of multinational corporations seeking raw materials in developing countries?

• Improved local agriculture

• Polluted rivers

• Increased tourism

• Better healthcare

What is one argument in favor of 'sweatshop labor' according to some liberal economists?

• It reduces the need for education.

• It provides better alternatives to scavenging or no paid employment.

• It monopolizes the local market.

• It increases the cost of living.

How do multinational firms help diversify the economy in developing countries?

• By focusing solely on agriculture

• By reducing the reliance on volatile primary products and agriculture

• By increasing local taxes

• By investing in primary products

What is a long-term benefit of Chinese companies building infrastructure in Africa?

• Long-term legacy of roads and railways

• Short-term employment

• Immediate profit repatriation

• Increased local taxes