Question

Please no copy and paste...Should developing countries welcome expanding MNEs to their country, or should they be against the company since there is the potential to shut down local competing businesses?

Answer 1

Answer:

Developing countries should definitely welcome the MNEs to spend and expand in the country because it has following advantages:

1. When MNEs set up their business in any other country, that country's people get employment and good salaries.
2. When MNEs come in the country, foreign flow of investment increases, out country gets foreign exchange and due to the foreign investment, our country's economy and capital markets do well.
3. People get foreign brands in the home country at cheaper prices, they adopt new trends and upgrade themselves with the new technology.
4. With more jobs and higher income, national income of country increases.
5. International trade becomes easy.
6. Productivity increases because MNEs work with higher technology and utilize the resources so production increases.