question_answer

  "MNCs   often   opt   for   foreign collaborations to expand and diversify. But there foreign collaborations have given rise to growth of monopolies and   concentration of power in few hands".    Comment.                 

Answer:

                  Entry of MNCs in a domestic market may prove harmful for small-scale producers who are not able to compete with them. MNCs buy up local companies. The most common route for MNCs investments is to buy up local companies and then to expand production. MNCs with huge wealth can quite easily do so. The large MNCs have tremendous power to  determine price, quality and labour conditions    for the small producers of other countries.         The small industries in India employ the largest number of workers in the country next only to agriculture. Several of these units have shut down due to tough competition by MNCs. As a result, many workers become jobless. These days most employers prefers to employ workers  flexibly. So, the workers' jobs are no longer  secure.