Conflict theorists contend that multinational corporations are attracted to developing countries because developing countries
A)have a small pool of cheap labor.
B)encourage strong trade unions.
C)often create a favorable "climate for investment."
D)they protect local workers,rather than exploit them.

Question

Quizplus · Accepted Answer

Conflict theorists argue that multinational corporations are attracted to developing countries because they can take advantage of the favorable "climate for investment" in these countries. This usually means that the government has created laws and regulations that are favorable to foreign investment and foreign companies. This can include reduced taxes, less regulation, and incentives for multinational corporations to invest in the country. The small pool of cheap labor in developing countries may also be a factor, but it is not the only reason that multinational corporations are attracted to these countries. The other options listed (strong trade unions and protecting local workers) are generally seen as obstacles to foreign investment, rather than attractors.

Conflict Theorists Contend That Multinational Corporations Are Attracted to Developing