Single Answer MCQ
Q-00045514

What might be a direct consequence of MNCs moving production to developing countries?

1

Increased local unemployment

2

Enhanced local skill levels

3

Higher costs for consumers

4

Stagnation of local markets

Answer and Solution

Answer

B. Enhanced local skill levels

Solution:

The movement of MNC production to developing countries can enhance local skill levels as workers receive training and experience from global companies. Unemployment may rise initially, but skill enhancement is a typical outcome.

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