- In your opinion, what are the biggest challenges facing MNC’s in today’s economy and why? Allow for political, technological, and economic challenges.
Multinational corporations are business that operate and deliver their products in more than one country. Multinational corporations are classified into two distinct categories. One, a multinational corporation may have a parent industry based in one country, while having many smaller branches that operate independently, in other countries. On the other hand, a multinational corporation may have many subsidiaries in many countries, but with its headquarters based on a specific country, where all the corporations’ activities are managed from (Sutton, 1975). Multinational corporations make it easier for the corporation to utilize raw materials from different localities to produce their goods at a cheap prize.
Multinational corporation’s subsidiaries are subject to the host countries political environment. The political stability in such a country may adversely affect the organization’s production. In case of political disturbances, the corporation may face repercussions. Furthermore, the political relationship between the country that the parent corporation subsidiary is based, with the host country may affect the productivity of the corporations as well as its operations. Multinational corporations are often subject to political interference (Stopford, 1993).
Purchase a Subscription To Read The Remaining Section