Economics 0455 · IGCSE · Globalisation, free trade and protection

Globalisation, free trade and protection — practice question

What could be a cost to the country where it is based when a multinational company (MNC) expands overseas?

  • AIncreased competition from the MNC may force firms in the host country to close.
  • BMany jobs created by the MNC may be low-skilled.
  • CThe MNC’s profits from the host country may be sent to its home country.
  • DThe MNC may cause job losses in its home country by moving production abroad.

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