Answer (B) is correct . Benefits to the home country include (1)?improved earnings and exports of products to foreign subsidiaries; (2) improved ability to obtain scarce resources; and (3) the typical benefits of free trade, i.e., greater product availability, a better international monetary system, and improved international understanding.
Answer (A) is incorrect because The competitive advantage of the multinational over its domestic rivals is an adverse effect on the home country.
Answer (C) is incorrect because New capital investment is a benefit to the host country.
Answer (D) is incorrect because Profits are remitted to the home country from the host country.
|
