suppose that a u.s.-based mnc is considering establishing a subsidiary in a foreign country. however, the mnc is concerned about the risk of the host government taking over the subsidiary true or false: all else equal, if the subsidiary hires mostly local labor it will make a host government takeover less likely. true false

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01-12-2022
Business

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suppose that a u.s.-based mnc is considering establishing a subsidiary in a foreign country. however, the mnc is concerned about the risk of the host government taking over the subsidiary true or false: all else equal, if the subsidiary hires mostly local labor it will make a host government takeover less likely. true false

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Qwclear Qwclear · Answer 1 · 2022-12-05T15:17:53+01:00

The statement that US based MNC while establishing a subsidiary in foreign country maybe overtaken by host government is true in nature.

Multinational Corporations are the big firms that operate in several countries and have headquarters in some developed nation. Generally, these MNC setup their firms in the countries which offer them easy business policies, major concessions, safety requirements, environmental standards, and human rights wherever they operate. The tension that these MNCs have is that of shareholder power. Many governments agree to setup companies only when the company offer them power to decide on big questions/ queries of the company. Political risk factor, fund transfers are also affected due to this control.

Learn more about MNC at:

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