Question

IBM had acquired a German company in 1922 and, like other American companies, found itself operating after 1933 in a country whose government violently suppressed political dissent and engaged in intimidation and discrimination against Jews. Discuss the options and responsibilities of multinationals with investments in politically reprehensible regimes.

Answer 1

Multinational companies are the companies which have operations in a number of countries at the same time.

If multinationals invest in a politically reprehensible regime, then there are certain responsibilities that they have to fulfill like:

• Multinationals should work for creating equality in the society with poor political working, be it gender equality or on the basis of caste by increasing the employment opportunities for all.
• Multinationals should work on improving the standard of living of the people of that area by increasing their income and providing them with better quality products.
• Multinationals can provide skill training and education to the people of the area with poor political condition to help them spend better lives and become more aware of the society.

The investment in the political reprehensible regime should be done keeping in mind the norms and rules regulations of the government of that area. But the aim should be welfare and betterment of the people.

There are certain kinds of investment options available for the multinationals like the companies should invest in those areas which would provide those goods and services which are not provided by the government of that area but are needed by the people of that area. This will help increase the demand and profit of the companies. Also investment should be made according to the resources available in that area.