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Multinational organizations can shop from country to country _________.

A) without facing any regulatory issues
B) by bypassing international trade laws
C) with complete autonomy
D) subject to various legal and economic considerations

User Jkj Yuio
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Final answer:

Multinational organizations operate within a framework of legal and economic considerations, which include adherence to international laws, regulations in host countries, and policies designed to protect national interests. They cannot shop from country to country with complete autonomy or disregard for these factors.

Step-by-step explanation:

Multinational organizations operate in a global marketplace, but they do so subject to various legal and economic considerations. Despite their significant economic influence, these entities cannot bypass international laws or operate with complete autonomy. Decisions made by multinationals have profound implications for policy issues like taxation, investment protection, and immigration. These decisions are influenced by different political and economic institutions across countries. Moreover, their pursuit of profit can sometimes lead to practices that exploit labor and resources in host countries, specifically where regulations on wages, healthcare, labor laws, or environmental standards are either weak or not enforced.

In international trade, while multinational corporations (MNCs) can benefit from economies of scale and the variety offered by multiple producers, environmental and security concerns are also at play. Countries may restrict imports to protect national interests such as businesses, jobs, or security. Thus, even multinational companies must navigate the complexities of varying international regulations, which can include environmental protection laws and economic policies that aim to prevent overdependence on key imports like oil.

User Webjprgm
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