What are the business risks faced by multinational companies? How do they deal with them?
The business risks faced by MNCs are as follows.
1) Political changes - MNCs have to face the effects of political environment prevailing in the host countries. They are exposed to the risk of potential fluctuations happening in the political system of the countries in which they intend to generate business.
They deal with political changes by adjusting their policies and operations according to the fluctuations happening in the system.
2) Availability of skilled labour - MNCs are faced with scarcity of skilled labour in different host countries as compared to their standards. This is because people in underdeveloped countries are not skilled and educated due to lack of resources in their respective countries.
MNCs deal with this risk by educating and training the perspective labour in their host countries.
1) Political changes - MNCs have to face the effects of political environment prevailing in the host countries. They are exposed to the risk of potential fluctuations happening in the political system of the countries in which they intend to generate business.
They deal with political changes by adjusting their policies and operations according to the fluctuations happening in the system.
2) Availability of skilled labour - MNCs are faced with scarcity of skilled labour in different host countries as compared to their standards. This is because people in underdeveloped countries are not skilled and educated due to lack of resources in their respective countries.
MNCs deal with this risk by educating and training the perspective labour in their host countries.