Answer to Question #264499 in Management for Sharti Siral

Question

examples with explanation of MNCs that:

• produce import substitution products in host country
• uses locally produced resources in host country
• transfers capital, technology, and/or skills to host country citizens
• creates jobs for host country citizens
• makes tax contributions in the host country

Answer 1

(a)

Barclays Bank offers banking services that can be substituted by the citizens of the host countries under which it operates and by doing so offers competition to the local banks.

(b)

McDonalds has been using locally reared chickens in host countries where they operate as well as use locally grown potatoes from the local farmers to produce finger licking meals in the host countries.

(c)

Technology giants Google have been transferring human capital from their headquarters in the United States of America to support their infrastructure in other countries such as Kenya and by doing so they also transfer technology and skills to such other host countries (Lhuilier, 2018).

(d)

Clothing brands such as L C Waikiki has established shops in host countries such as Kenya and by doing so have established jobs to cashiers, shop managers, cleaners and security guards.

(e)

Standard Chartered Bank makes tax contributions to the governments of the host countries in all the economies under which it operates.

 

 

 

References

Lhuilier, G., 2018. MNCs’ obligations in their ‘sphere of influence’. In Research Handbook on Human Rights and Investment. Edward Elgar publishing.