Asked by Frank pelicano on Jun 10, 2024

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All of the following are benefits to the host country of a multinational corporation EXCEPT:

A) technology transfer.
B) reduced tax base.
C) capital development.
D) increased employment opportunities.
E) development of local resources.

Technology Transfer

The process of sharing or disseminating technology between different organizations, or from one country to another, often aimed at fostering innovation and development.

Multinational Corporation

A company that operates in several countries around the world, managing production or delivering services in more than one country.

Tax Base

The total amount of assets or income that can be taxed by a government, serving as a source of public funding.

  • Evaluate the pros and cons of transnational firms for the countries of their foundation and those providing them residence.
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AM
Arjela MustajJun 10, 2024
Final Answer :
B
Explanation :
Reduced tax base is not a benefit to the host country of a multinational corporation; instead, it is a potential drawback. Multinational corporations often benefit host countries through technology transfer, capital development, increased employment opportunities, and the development of local resources, but they can also lead to a reduced tax base due to tax avoidance strategies and incentives offered to attract these corporations.