Question

When a multinational corporation opens a new factory in another country, what economic responsibilities must it follow? Are there any other responsibilities that should be considered? Explain.

Answer 1

The responsibilities that must be considered when a multinational opens a new factory in another country are legal and cultural responsibilities.

What are the obligations of a multinational?

A corporation with units in different countries must follow the legislation in force in the place, adapting its processes and services to essential requirements, such as payment of taxes and licenses to operate in the country.

Therefore, in addition to the economic responsibilities, there are also the responsibilities of cultural adaptation, so that the company has good acceptability by the local population and is well positioned in the market.

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