Which TWO of the following are positive impacts for a national economy which hosts a multinational company's (MNC) production facilities within their country? (Choose two.)
A) Mobile MNCs mean that operations can easily be transferred from one economy to another.
B) MNCs provide employment opportunities in other countries for skilled workers from the host country.
C) Local producers can copy superior processes from the MNC which raises productivity within the recipient economy.
D) Direct financial investment should improve economic welfare as capital is transferred to economies where the marginal rate of return on capital is highest.
E) MNCs can use transfer pricing to ensure taxes are minimized within a recipient economy.

Question

Quizplus · Accepted Answer

MNCs can enhance local productivity by sharing advanced processes and technologies, and their financial investments can boost economic welfare by optimizing capital allocation.

Which TWO of the Following Are Positive Impacts for a National