Question

which safeguards are a must to ensure effective role of MNCs in the host countries?

Answer 1

Dear student,

To ensure effective role of MNC's in the host country following safeguards are must:
1) The host country must ensure that MNC's should not be allowed to control Indian organisations until they bring FDI and have majority stake in them.
2) MNC's must be allowed in industries requiring latest technology, like telecommunication industry.
3) MNC's should not be allowed to damage the Indian market by entering into an area of consumer goods.

Regards