Question

Discuss the charge that Multinational Corporations (MNC) competes unfairly in Less Developed Countries (LDC) to the detriment of the host country. You will research and present argument that supports or disagrees with this statement. Use all that you have learned so far in this class and have read from the text surrounding ethics

Answer 1

The charge that Multinational Corporations (MNC) competes unfairly in Less Developed Countries (LDC) to the detriment of the host country. We disagree with such statement.

As Multinational Corporations are huge in the world, and intended to reach in every part of region of world. It develop the whole base from scratch to do their business in any region. When Multinational Corporations enters into Less Developed Countries then they get certain advantage like cheap labour, cheap cost of material, huge market etc. But it will benefited to Less Developed Countries too as to Multinational Corporations.

Less Developed Countries get more benefits to develop themselves to Developed Countries with the help of Business by Multinational Corporations in there countries.

Some arguments or Points to be explained to Disagreement to the statement that charge that Multinational Corporations (MNC) competes unfairly in Less Developed Countries (LDC) to the detriment of the host country. We disagree with such statement. These are as follows:

1. Huge Capital Investment :

When Multi national corporations wants to do business in Less Developed Countries then they have to developed and build from scratch as they wanted to maintain there standard and quality of services and product. For that Multi national corporations invest huge amount as Capital Investment in Less Developed Countries.

2. Developed Infrastructure :

Multi national Corporations develop infrastructure for there quality and standard services and production. It develop the infrastructure which creates demand for lands, local services, products, labour to developed such infrastructure. Which boost the economy of Less Developed Country.

3. Employment:

Multi National Corporation creates employment in Less Developed Countries to run the Business operations, for building there infrastructure. Which supports the people and economy of Less Developed Countries.

4. Skill Development:

Multi national Corporations conduct training to develops skills for there quality and standard production of product and rendering of services. It develop the skills which recognizes globally and as per global demand. Which gives global exposure to these employees.

5.Exposure in Global Market:

The services and products of Multi national corporations have demand in the global market. Which opens doors to the Less Developed Countries where Multi national Corporations are working or established there businesses as well as local business of these countries.

6. Economic, Political policy:

Less Developed Countries get benefited economically, politically as they set rules and regulations for such Multi National Corporations.

7. Huge Tax Revenue:

Less Developed Countries get revenues by charging Tax burdens on Multi National Corporations. Which Less Developed Countries can spend on there development.