Why are many MNCs reluctant to produce or sell their goods in China? What role can...

Why are many MNCs reluctant to produce or sell their goods in China? What role can the Chinese government play in helping to resolve this problem?

Expert Solution

MNC's are mostly reluctant to produce or sell their goods in China because of the prevalent exploitative practices in Chinese factories which have ethical implications making the MNC businesses open to the risk and exposure of being hold accountable for exploitative activities such as bad working conditions, low wages, underage workers, etc. Moreover the country is known for facing ethical and human rights violations which can also create a threat to MNCs and jeopardize their brand image

Chinese government needs to stay more aware about the exploitative activities being conducted at factories. Most importantly MNC's need to formulate strict regulations regarding employment, wages, working environment, age etc so that such exploitation is prevented from taking place. This will relieve MNC's from the fear of facing lawsuits for encouraging exploitative activities.

.

Thanks dear student.. Hope this will help you..

keosha answered 2 months ago

Why is the United States pushing for the Chinese currency to appreciate? Why is China reluctant...

Why is the United States pushing for the Chinese currency to appreciate? Why is China reluctant to allow its currency to appreciate? Reflect on how policy decisions made in China affect the strategies of U.S. companies.

Why China does not sell its debt to US

Why China does not sell its debt to US?

Two large countries, the US and China, produce only two goods, manufactured goods and Financial services,...

Two large countries, the US and China, produce only two goods, manufactured goods and Financial services, using two factors of production, skilled and unskilled labour. The production of Financial services is relatively skill-labour intensive and manufacturing is unskilledlabour intensive. The US is relatively well endowed with skilled labour, whereas China is relatively well endowed with unskilled labour. Assume that each society's preferences over the two goods are identical. (a) Draw the production possibilities frontier (PPF) for the US. Carefully explain...

Two large countries, the US and China, produce only two goods, manufactured goods and financial services,...

Two large countries, the US and China, produce only two goods, manufactured goods and financial services, using two factors of production, skilled and unskilled labour. The production of financial services is relatively skill-labour intensive and manufacturing is unskilled-labour intensive. The US is relatively well endowed with skilled labour, whereas China is relatively well endowed with unskilled labour. Assume that each society‘s preferences over the two goods are identical. (a) Draw the production possibilities frontier (PPF) for the US. Carefully explain...

This chapter discusses companies that are oligopolists in the market for the goods they sell. Many...

This chapter discusses companies that are oligopolists in the market for the goods they sell. Many of the same ideas apply to companies that are oligopolists in the market for the inputs they buy. If sellers who are oligopolists try to increase the price of goods they sell, the goal of buyers who are oligopolists is to try to decrease the prices of goods they buy. Major league baseball team owners have an oligopoly in the market for baseball players....

No country in the world can produce unlimited number of the goods, the production of goods...

No country in the world can produce unlimited number of the goods, the production of goods will be depending on various combination of the factors of production. Based on your opinion, why unemployment occurs in a nation. please add examples

Explain why the government produces goods, the private sector can and does produce, while the private...

Explain why the government produces goods, the private sector can and does produce, while the private sector will not produce the products ONLY the government can and will produce

a) A company can sell all the units it can produce of either Product A or...

a) A company can sell all the units it can produce of either Product A or Product B but not both. Product A has a unit contribution margin of $16 and takes two machine hours to make and Product B has a unit contribution margin of $30 and takes three machine hours to make. If there are 5,000 machine hours available to manufacture a product, income will be $10,000 more if Product A is made. $10,000 less if Product B...

What are externalities? Why might markets which produce at equilibrium actually over or under produce goods/services?...

What are externalities? Why might markets which produce at equilibrium actually over or under produce goods/services? How could the government improve such market outcomes?

Question