Edzy
Single Answer MCQ
Q-00015725

What might be a disadvantage for local producers due to the presence of MNCs?

1

Improved production technology

2

Increased competition from larger firms

3

Higher wages for workers

4

Access to global markets

Reviewed & Verified by Edzy Expert

Sandeep Chaturvedi

Sandeep Chaturvedi

CBSE Social Science & Humanities Reviewer

Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

M.A. HistoryM.A. Political ScienceB.Ed.

Answer and Solution

Answer

B. Increased competition from larger firms

Solution:

An increased competition from larger firms like MNCs can negatively impact local producers who may struggle to keep up with the scale and pricing of MNCs.

Watch Video Solution