Question

Multinational Corporations (MNCs) are companies that do business both domestically and internationally. Foreign investment and flow of funds play an important and key role to these companies. Its sometimes even difficult to determine where the company is officially housed with operations in many different parts of the world. This also applies to a company when it comes to sales, costs and profits.

List and discuss one factor affecting foreign investment and flow of funds of an MNC to a country. Also, briefly discuss one advantage and one concern that the company may experience in our global economy and why.

Answer 1

Answer :- Factor affecting foreign investment and flow of funds of an MNC to a country

Government Rules and Regulation :- Government rules and regulation affect the  foreign investment and flow of funds of an MNC to a country very much As many times government change the policies that leads to change in the rate of the foreign currency due to which we are not able to work out the MNC and also the government can impose a limit or taxes or we say tarriff that are very much affect the both foreign investment and flow of funds of an MNC to a country.

The Advantage the Company may experiency in our global economy is that company can take a benefit of a lower cost and also the benfit of higher sales with it Which helps to increase its eernings and made a wide reach with the customers.

The Concern that the company may experience in our global economy is of natural disasters Many time a natural disasters comes at many places Due to which many times companies are faces heavy losses such as the disaster in Kerela recently.

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