Multinational enterprises:
A) Increase the transfer of technology between nations
B) Make it harder for nations to foster activities of comparative advantage
C) Always enjoy political harmony in nations where their subsidiaries operate
D) Require governmental subsidies in order to conduct worldwide operations

Question

Quizplus · Accepted Answer

Multinational enterprises bring advanced technology from their home country to other countries in which they operate, promoting the transfer of technology between nations.

Answer: B
 Multinational enterprises have significant bargaining power, which can make it difficult for less developed countries to foster activities of comparative advantage since they might be forced to engage in trade that is not in their best interest.

Answer: No Choice
 Political harmony is not always present between multinational enterprises and the nations where their subsidiaries operate.

Answer: No Choice
 While some multinational enterprises may receive subsidies or favorable treatment from host governments, to say that they require it to operate worldwide is not accurate.

Multinational Enterprises