Question

1. Kwok and Tadesse (2006) indicate that MNCs act as an agent to change a host country’s institutions and therefore help to lower incidences of corruption. Explain why MNCs often attempt to change host country institutions instead of just paying their way to get things done. Explain the reasons.

Answer 1

ANSWER :-

☆MNC's get FDI and this FDI is additionally seen as a method of expanding the effectiveness with which the world's scant assets are utilized. There are numerous reasons why FDI has become a much-talked about subject.

●The expansion in the yearly worldwide stream from has brought about the ascent in its relative significance as a wellspring of venture assets for various countries Individuals are additionally keen on MNC's and FDI as it is the point of convergence in incorporating the world economy, or prevalently named as "globalization".

●Along with the pretty much consistent ascent on the planet's exchange to-GDP proportion, the expanded significance of outside claimed creation and dispersion offices in many nations is refered to as unmistakable proof of globalization.

● In such situations where MNC's are better prepared to tap the normal assets of the host nation and increment the effect of innovation, it is frequently the aim of the MNC to change the manner in which the neighborhood government works and not enjoy any defilement or related exercises.

● Along these lines they put stock in not paying to complete their work however by changing the working of the nearby government and civil servants .

PLEASE UPVOTE.