Multinational corporations face problems since they ?
Correct answer: B. may raise political problems in countries where their subsidiaries operate
- A. cannot benefit from the advantage of comparative advantage
- B. may raise political problems in countries where their subsidiaries operate
- C. can only invest at home but not overseas
- D. can only invest overseas but not at home
Explanation
Multinational subsidiaries can affect host-country policy, employment, taxation, and control of strategic industries, creating political tensions. Their ability to use comparative advantage is a benefit, not the stated problem.
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