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Fumimatsu
| Reward Points: | 2 |
| Efficiency:
Efficiency is a measure of the effectiveness of your arguments. It is the number of up votes divided by the total number of votes you have (percentage of votes that are positive). Choose your words carefully so your efficiency score will remain high. | 100% |
| Arguments: | 1 |
| Debates: | 0 |
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FDI may cause local companies of that country to go out of business. Because the multinational companies are larger, they are able to benefit from economies of scale and produce their products at a lower price. Local companies, however, are smaller and therefore, are not able to lower their price to be below that of the MNC's, making them go out of business. Furthermore, even though the consumers may benefit, the country's GNI will not always improve as the MNC's are making profit, but taking it back to their country; while, the local companies are going out of business and therefore, are unable to provide back to the company. Hence, while the GDP of that country may increase, the GNI will not always increase.
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