Business – 6.1 External influences – International | e-Consult
6.1 External influences – International (1 questions)
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Model Answer: The table illustrates that MNCs can boost tax revenue through increased economic activity, but their effective tax contribution may be diluted by incentives. They excel in technology transfer, introducing advanced processes, yet a notable share of profits is repatriated, limiting domestic capital accumulation. Domestic firms, while contributing a higher proportion of taxable income and retaining profits locally, generally offer less sophisticated technology and innovation.