Which of the following statements is not correct about MNCs?a)MNCs set up production jointly with local companiesb)MNCs can provide money for additional investmentsc)MNCs do not bring with them the latest technology for productiond)MNCs set up factories for productionCorrect answer is option 'C'. Can you explain this answer?

Question

Answer

Correct answer is option c

Answer

Incorrect Statement about MNCs

Introduction:
MNCs or Multinational Corporations are companies that operate in multiple countries and have a global presence. They have a significant impact on the economy and trade of the countries they operate in.

Statement:
c) MNCs do not bring with them the latest technology for production.

Explanation:

MNCs are known to bring with them advanced technology and production methods that are not available in the host country. This enables them to manufacture products more efficiently and at a lower cost. This, in turn, leads to increased productivity and competitiveness in the host country.

Correct Statements about MNCs:

a) MNCs set up production jointly with local companies:
MNCs often collaborate with local companies to set up production facilities. This enables them to leverage the local company's knowledge of the local market and regulatory environment. It also helps them to establish a stronger distribution network and build relationships with local suppliers and customers.

b) MNCs can provide money for additional investments:
MNCs often have access to capital markets and can provide funding for additional investments in the host country. This can be in the form of loans or equity investments. This helps to stimulate economic growth and create jobs in the host country.

d) MNCs set up factories for production:
MNCs often set up factories for production in the host country. This enables them to produce goods locally and reduce transportation costs. It also helps to create jobs and stimulate economic growth in the host country.

Conclusion:
In conclusion, the correct statement about MNCs is that they bring with them the latest technology for production. MNCs are known for their ability to innovate and bring new technologies and production methods to the host country. This helps to increase productivity and competitiveness in the host country and contributes to economic growth and development.

Answer

Option C

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