9. Multinational Enterprises as a Source of Conflict Complete the following paragraph to explain the effect of multinational enterprises on a host nation's economy. Assume a large pharmaceutical company based in Germany, where the corporate tax is 37% decides to relocate some production of pharmaceuticals to Ecuador, where the corporate tax is 8%. If the parent company from Germany purchases pharmaceuticals from its subsidiary in Ecuador at grossly inflated prices, the result is a positive impact on Ecuador's economy, and a negative impact on Germany's economy. As a result, the governments of Germany and Ecuador are likely to experience conflict regarding the German subsidiary locating in Ecuador. Now, assume that a major national election takes place in Ecuador. As a result, the Indigo party has come to power. Assume that the Indigo party's main political stance is nationalization of all pharmaceutical facilities. Based on this knowledge of the Indigo party's politics, businesses in Germany are likely to support the election of the Indigo in Ecuador