Multinational corporations have several complaints about host countries. Which of the following is NOT one of these complaints?
A) Pressure to buy raw materials at inflated prices
B) Pressure to pay high prices for services
C) Failure to uphold contracts
D) Pressure to keep local wage rates low
E) Foreign exchange restrictions

Question

Quizplus · Accepted Answer

Multinational corporations typically seek to minimize costs, including labor costs, to maximize profits. Therefore, they would not complain about pressure to keep local wage rates low; in fact, lower wage rates might be one of the reasons they choose to operate in certain host countries. The other options (A, B, C, E) represent common issues that multinational corporations might face when dealing with host countries, such as inflated prices for raw materials and services, failure to uphold contracts, and foreign exchange restrictions.

Multinational Corporations Have Several Complaints About Host Countries