Which of the following MNC subsidiary activities is blamed for rising interest rates in host countries?
A)transferring in inappropriate technology
B)dissolving local labor unions
C)raising capital from local sources
D)filling key jobs with expatriates

Question

Quizplus · Accepted Answer

Raising capital from local sources can lead to increased demand for borrowing and cause the interest rates in host countries to rise. This is because the MNC subsidiary may be competing with local firms and governments for limited local capital resources. Transferring inappropriate technology, dissolving local labor unions, and filling key jobs with expatriates may have other negative impacts on the host country, but they are not directly linked to rising interest rates.

Which of the Following MNC Subsidiary Activities Is Blamed for Rising