Single Answer MCQ
Q-00015735

What does an MNC's establishment in a new country usually lead to?

1

Complete regional isolation

2

Increased local production intertwining with global supply chains

3

A decrease in local job opportunities

4

Reduction of local manufacturing capabilities

Answer and Solution

Answer

B. Increased local production intertwining with global supply chains

Solution:

When an MNC establishes operations in a new country, it often connects local production facilities to global supply chains, increasing interlinkages in manufacturing and allowing for greater efficiency.

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