question_answer

What is the role of MNCs in the globalisation process?

Answer:

MNCs -Definition: Refer to pt. 5 (Important Terms and Concepts).

(a) MNCs have served as agents for the transfer of superior technology. They have provided advanced technological know-how, sophisticated, manufacture processes and improved skills to underdeveloped countries.

(b) MNCs transfer capital from countries where it is abundant to countries where it is scarce.

(c) MNCs usually produce like effects' in the host country.

(d) MNCs help to build up knowledge base' and thus serve for the development of human resources.

(e) Operations of MNCs have a favourable effect on the balance of payments of the host country.

(f) MNCs also help in creating large-scale employment opportunities by setting up their branches and subsidiaries.