Question

MNCs may undertake overseas investment projects in a foreign country, despite the fact that local firms may enjoy inherent advantages. This implies that A. MNCs are making a mistake in this case and will have to eventually withdraw.B.MNCs should have significant advantages over local firms such as comparative advantages due to intangible assets.C. the local firms will not have to compete due to their inherent advantages over the foreigners.D. none of the above

Answer 1

Answer:

The correct answer is B

Explanation:

MNCs stands for the Multinational Corporations, which took the investment projects in the foreign country, knowing the fact that the local firms have inherent advantages. This means that the MNCs also have the significant benefits over the local firms like they have the comparative benefits because of the intangible assets as the intangible assets contributes value in the business.