207k views
0 votes
Relations between governments and MNCs are generally positive if the investment:

A. increases the volume of imports.
B. uses globally produced resources.
C. brings capital, technology, and/or skills.
D. brings in more number of foreign nationals.
E. outsources work back to its home country.

User BogdanCsn
by
7.9k points

1 Answer

2 votes

Final answer:

The relations between governments and MNCs are generally positive when the investment by MNCs includes bringing capital, technology, and skills to the host country, enhancing local economies and standards of living, despite some concerns about environmental impact and overreliance on imports.

Step-by-step explanation:

The relations between governments and multinational corporations (MNCs) are generally positive if the investment brings capital, technology, and/or skills. MNCs that invest in local infrastructure, such as roads and powerlines, not only contribute to the economy by creating jobs but also help to raise the standard of living for local communities.

These companies may also help in the development of necessary job skills and the introduction of new technologies that benefit domestic industries. Moreover, MNCs like retail giants provide access to high-quality consumer goods at competitive prices, which has a ripple effect on the standard of living in the countries where they operate.

However, there are concerns that MNCs may contribute to environmental degradation or lead to a country's overreliance on imports, which may threaten national security. Governments must balance these potential negatives with the positive impacts that MNCs can have on local economies.

Therefore the correct answer is C. brings capital, technology, and/or skills.

User Eleonor
by
8.4k points