Question

Should the United States move to greater and stricter regulation of multinational business enterprises who wish to either enter or gain greater shares of US markets?

Answer 1

Advantages of Multinational Operations

Conducting business on the multinational level brings with it a host of benefits for the company's operating abroad. The most well-known advantage is the ability to tap into low-cost labor markets, which represents one method of cutting production costs. Raw material resources may also be cheaper to extract and process outside of the company's nation of origin. An additional positive aspect of operating multinationally is that it offers access to multiple markets for a company's products. In essence, a multinational business offers a competitive edge for companies that incorporate it in their business model against those that do not.

Drawbacks of Multinational Operations

Ethical concerns are one of the biggest drawbacks to conducting multinational business. Critics of multinational operations say that setting up shop in a developing nation is predatory by nature and exploits the desperation of the local populace. Critics more interested in broader economic implications say that outsourcing factory labor to developing nations damages the local economy of the company's parent nation, creating a scarcity of middle-class jobs. While it may seem trivial whether a single company outsources its workforce, the effect on a national economy is cumulative and eventually portions of a national industrial base can collapse. One such example is the collapse of the American steel industry in the 1970s and 1980s, which created a destitute region in the U.S. sometimes referred to as the “rust belt,” spanning “the formerly dominant industrial states of Illinois, Indiana, Michigan, Ohio and Pennsylvania,” according to Encyclopedia.com's article on the subject.

Basis on above information it good to be post regulation on multinational bussiness enterpriese countries like U.S s it is a already developed economy and it hardly give any negetive impact its economy if they put restriction on bussiness enterprices.