Question

Describe three (3) key challenges facing multinational firms historically and today.

Answer 1

The three major challenges are:-

Economic Condition- The economic conditions of a country have a huge impact on its marketing system. It majorly impacts the buying behaviour and purchasing power of people. If economic conditions are not good, it becomes very difficult for multinationals to generate profit out of that country.

2) The Labour Costs- The labour costs are different from country to country. If the labour available in a country is not cheap, it becomes difficult for the multinationals to set up manufacturing units in that country. Labour should always be cheap and easily available.

3) Political Instability- It is a major threat to the working of the multinationals, this is because political instability hinders all the processes of the business, and multinationals do not want to work in that particular country.

If you have any doubt please comment, I am always ready to help you.

Kindly give your valuable feedback.