Economics 2281 · O Level · Differences in economic development between countries

Differences in economic development between countries — practice question

Many low-income countries depend on multinational companies (MNCs) for economic development. What is one disadvantage of this for the low-income country?

  • ALocal firms close because MNCs are more efficient.
  • BNew production techniques are introduced.
  • CThe balance of payments may improve.
  • DThe MNCs have to pay taxes on their profits.

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