Disadvantage of MNC reliance in low-income countries

Steps:

• Identify the question's focus: disadvantages of MNCs for economic development in low-income countries.
• Evaluate each choice: determine if it harms local economy or benefits it.
• Recognize disadvantages involve local harm, like competition or dependency.
• Select the option showing negative impact on domestic businesses.

Why A is correct:

• MNCs' superior efficiency and resources outcompete local firms, leading to closures and reduced domestic entrepreneurship, per economic dependency theory.

Why the others are wrong:

• B: Introduces beneficial technology transfer, aiding development.
• C: Tax payments provide government revenue, supporting public services.
• D: Improves trade balance through exports, boosting national income.

Final answer: A