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Statement: Should MNCs be allowed to start 100% owned subsidiaries in India? Arguments: I. Yes, our neighbours have permitted. II. No, India 's entrepreneurial system needs protection.

if only argument I is strong
if only argument II is strong
if either I or II is strong
if neither I nor II is strong; and

Correct Answer: if only argument II is strong

Explanation:

I is an absurd argument. It is not necessary that what fits others will fit us. II is a strong argument. India has to balance the competitive environment with some protection to domestic entrepreneurs. Even developed countries change their laws to protect their entrepreneurs.

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