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Is there any economic gain for a host country if a MNC offshore some of its...

  1. Is there any economic gain for a host country if a MNC offshore some of its activities to the host country? Is there any economic gain for a home country if a MNC from a home country offshores some of its activities abroad?
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Answer - When the MNC offshores its production , the host country gains from it. The MNC helps of mobilise those factors which were not being utilised in the home country. It provides the employment to labors of host country and ultimately increase their income which leads to rise in AD of host country.

On the other hand , the home country is able to increase its national income. This is because the MNC is able to lower its cost of production by offshoring in host country and increase its profits. This will lead to rise in the national income of home country

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