Q.4. Multinational companies establish themselves in developing countries to enjoy huge profits by selling consumer goods or luxury items. They start business by offering wide variety of good at prices cheaper than local retailers offer. But once they are established they increase prices (a) State the values the government of a developing country ignores whileallowing MNC's to establish in their country (b) Which values do the MNC's Violate? (c) Explain the role of MNC's in developing Countries
Answers
a) State the values the government of a developing country ignores while allowing MNC's to establish in their country.
Ans: The main values that the government ignores while setting up such business is that they cut down trees and thus environment is getting spoiled day to day as the company is much more more bothered about their own benefits and hence pollution is increasing day by day .
(b) Which values do the MNC's Violate?
Ans: Human rights are violated by the MNC's. They set up an argument with the people and hurt their basic needs for their own benefiy.
(c) Explain the role of MNC's in developing Countries.
Ans: In developing countries MNC's plays a major role in hiring students from all over the country and giving them job opportunities.It also helps the need of educations and scope of the same.