Which one of the following is not a demerit of the MNCs ?
MNCs provide means of integrating national economies.
Multinational corporations operate in several countries and bring both benefits and drawbacks to the economies they touch.
Their usual demerits are that they can crush local competition and gain monopoly power, shift jobs abroad and so slow employment growth at home, and use transfer pricing to move profits and avoid taxes.
Linking national economies through cross-border investment, technology and trade flows is a benefit of such firms, not a demerit, so it is the statement that does not fit the list of drawbacks.
Hence, MNCs provide means of integrating national economies..
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