Question

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?

Answer 1

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.

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