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MNCs Usually Enjoy More Bargaining Power Than Host Countries in Low-Skilled

Question 10

Multiple Choice

MNCs usually enjoy more bargaining power than host countries in low-skilled labor-intensive manufacturing industries because


A) only a few developing countries have excess low skilled labor.
B) investments in low-skilled manufacturing entail a relatively low amount of fixed capital.
C) investments in low-skilled manufacturing cannot be readily moved out of a particular country.
D) technology in many manufacturing industries changes rapidly and, therefore, is easily transferred to host workers.
E) like natural-resource investments, manufacturing investments can become hostages.

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