Question:

Which of the following is an advantage for the host country of a multinational corporation?

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-greater protective tariffs

-greater employment opportunities

-greater political power

-greater income from tariffs

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4 ANSWERS


  1. employment opportunities and political power are the main ones. ideally they should be subsidizing and not tariffing, but the government can get more income from tariffs because the multinational corporation would be importing stuff that would be taxed.


  2. mostly greater employment opportunities , though there is some political advantages

  3. greater income from tariffs

  4. Definitely greater employment opportunities as the foreign company moves into the host country and creates jobs.

    It is not greater political power. The host country in fact loses political power, as the foreign company can say "if you do not lower our taxes, we will leave and take all those jobs with us". The multinational corporation gains the political power.

    Tariffs are irrelevant, because a multinational company is unlikely to enter a country whoose market is protected by tariffs hence preventing them from selling high volumes of their products.

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