Business Studies

Short Answer Type Questions: What precautions must be kept in mind while allowing a multinational company to operate in your country?


SOLUTION
Precautions that should be taken while allowing an MNC to operate in a country:
  • They should use natural resources in an efficient way. Often it is observed that MNCs use resources carelessly which leads to its depletion.
  • There should be no involvement in the political affairs of the country.
  • Should not create a situation of monopoly.
  • They should offer products according to the suitability of the host country.
  • Prices should be such that even poor people should be able to buy the products.
  • Profits earned by them should be reinvested in the host country.
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