Do foreign MNCs participate in political activities in a host country? Explain why.

Do foreign MNCs participate in political activities in a host country? Explain why.

Expert Solution

Influence and political pressure-multinational investment can be very beneficial to a country and that will also give it a disproportionate influence over the host country's government and other organizations. Despite their economic value, governments will always consent to reforms that may not be advantageous to their people's long-term welfare.

MNCs have an unintended role as State instruments in foreign policy. In this regard, governments have used MNCs to advance national interest by strengthening the effects of sanctions through MNC production networks, facilitating capital transfers through firms to strengthen monetary policy or enabling foreign affiliates of MNC to assist in intelligence gathering

Firms privileged position in the view of governments assists political leaders' in defining problems, devising policies, and prioritizing objectives.the influence of corporations on American foreign relations stems primarily from their ability to shape the external environment from which problems, conflicts, and crises grow, and their ability to define the axiomatic.

Rahul Sunny answered 2 years ago

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