Economics Balance Of Trade Questions
Multinational corporations play a significant role in the balance of trade. They contribute to both exports and imports of goods and services between countries, which directly affects a country's balance of trade.
On the export side, multinational corporations often have production facilities in multiple countries, allowing them to produce goods and services in one country and export them to others. This increases a country's exports and improves its balance of trade.
On the import side, multinational corporations also play a role by importing raw materials, components, and finished goods from other countries to support their production processes. This increases a country's imports and can potentially worsen its balance of trade.
Overall, the activities of multinational corporations have a significant impact on a country's balance of trade, as they contribute to both exports and imports, influencing the trade surplus or deficit.