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Country ABC takes over the business of a MNC situated in ABC itself by giving inadequate compensation. Host country ABC prevents the MNCs to get
Country ABC takes over the business of a MNC situated in ABC itself by giving inadequate compensation. Host country ABC prevents the MNCs to get converted their earning from local currency to foreign currency to repatriate the same to home country of MNCs. Due to this restrictions even investors in MNCs business also suffer a lot. ABC has enforced certain dramatic changes in Rule and Regulations governing the host country. These sudden changes are of following types: i. Unanticipated increase in tax rates applicable for MNCs operating in the host country. ii. Compulsion to hire local workforce. iii. Compliances of stricter environmental standards. ABC is also facing high level of red tapism and corruption at local and higher level and it pose a seriousrisk for MNCs operating in the host country as it leads to uncertainty and high cost of operation. The host country revoke an earlier turnkey projects awarded by the Government of host country without adequate consideration and damages.
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