Question

Are multinational enterprises beneficial to the consumer and communities of their home countries? Are they beneficial to the consumer and communities of the countries where they operate? Are rules both national and international are sufficient to regulate the business activities of the multinational enterprises? What changes would help any multinational enterprise?

Answer 1

1) Multinational enterprises beneficial to the consumer and communities of their home countries

a) Increase the employment opportunities.

b) Gives industrial boost to the home country

c) get the benefit of foreign culture.

d) Increases National income.

2) Multinational enterprises beneficial to the consumer and communities where they operate.

a) Creates competition on markets

b) Use of latest technologies

c) get the benefit of foreign culture.

d) High quality products will get at cheaper price because of competition.

3 )rules both national and international maybe sufficient to regulate the business activities of the multinational enterprises.

a) There are lots of problems for a multinational enterprise to enter into a new country because when they sale products at lower price than the actual price in that country, then the home companies in that country will need to shut down. so than to reduce such problem that country will add high tariff to that product so that the will be balanced.

b) Generally home country will encourage multinational enterprises because it will help to increase the foreign money inflow to the country and thus increase the national income.

4) Tariff is considered to be the biggest barrier to the multinational enterprises. when the tariff rate decreases it will reduce the price and thus demand and sales increases. so that i will be beneficial for the multinational enterprises.