Question

The idea that an MNE could come into a country and monopolize a market tends to be a greater concern in countries that have______

Answer 1

The idea that an MNE could come into a country and monopolize a market tends to be a greater concern in countries that have strong protectionist legislation, a high domestic investment rate, and limited competition in key industries.

Step-by-step explanation:

The idea that an MNE (Multi-National Enterprise) could come into a country and monopolize a market tends to be a greater concern in countries that have...

1. Countries with a tradition of strong protectionist legislation shutting out imports: These countries are more likely to have barriers in place that make it difficult for foreign companies to enter the market, creating an environment where an MNE could potentially monopolize it.
2. Countries with a domestic investment rate much higher than the domestic savings rate: When a country has a high domestic investment rate but low domestic savings rate, it may rely more on foreign investment. This can give MNEs more influence and control in the market, increasing the chances of monopolization.
3. Countries with a tradition of limited competition in key industries: Some governments may control and limit competition in key industries, which can provide opportunities for MNEs to dominate the market and establish a monopoly.