Question

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

Answer 1

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.