Question: The major issues involving multinational enterprises (MNEs) as a source of conflict for source and host countries can be explained as follows: Monopolistic tendencies: MNEs
The major issues involving multinational enterprises (MNEs) as a source of conflict for source and host countries can be explained as follows: Monopolistic tendencies: MNEs often have significant market power due to their size and resources. This can lead to monopolistic behavior, where they dominate the market and stifle competition, which can be detrimental to local businesses in the host country. Exploitation of local employees: MNEs may take advantage of lower labor costs in host countries, potentially leading to exploitation of workers through low wages, poor working conditions, or unfair labor practices. Dumping: This refers to the practice of selling goods in a foreign market at a price lower than their cost of production or below their price in the home market. This can harm local industries in the host country. High taxes: MNEs often face high taxes in host countries, which can lead to conflicts as they may seek ways to minimize their tax liabilities, sometimes through legal but controversial methods. Severed relationships amongst nations: The operations of MNEs can sometimes lead to diplomatic tensions between the home and host countries, particularly if there are disagreements over regulations, labor practices, or other issues. Change of host government policies: Changes
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
