Answer:
Disadvantages of MNCs -
(a) MNCs are profit-oriented and are not concerned with an overall economic development of the host countries.
(b) Their technology is usually capital intensive which is not suited for a country like India.
(c) MNCs create regional economic disparities.
(d) Foreign remittances like payment of dividend, royalties, and technical knowhow and professional services, etc. put a severe drain on the foreign exchange resources of a developing economy.
(e) MNCs may prove detrimental to industrial development in the long run.
(f) MNCs expenditure on scientific research in developing economy is negligible.
(g) MNCs often resort to undesirable and corrupt practices.
(h) MNCs prefer to participate in the production of mass consumption and non-essential items.
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