MNCs may undertake overseas investment projects in a foreign country,despite the fact that local firms may enjoy inherent advantages.This implies that
A)MNCs are making a mistake in this case and will have to eventually withdraw.
B)MNCs should have significant advantages over local firms such as comparative advantages due to intangible assets.
C)the local firms will not have to compete due to their inherent advantages over the foreigners.
D)none of the options

Question

Quizplus · Accepted Answer

MNCs may have significant advantages over local firms, such as access to capital, technology, and managerial expertise, which allow them to compete effectively despite the inherent advantages enjoyed by local firms. Additionally, MNCs may enter into partnerships with local firms to leverage their expertise and gain access to local markets. Therefore, it is not a mistake for MNCs to undertake overseas investment projects in foreign countries despite the inherent advantages enjoyed by local firms.

MNCs May Undertake Overseas Investment Projects in a Foreign Country,despite