In your opinion, what are the biggest challenges facing MNC Solution MNC or Multinational Corporations operate in more than one country and deliver its products or services worldwide. As these corporations operate in beyond a particular geography, they gets affected by challenges i.e. economic, political, technological and various social challenges that exists in countries they operate. The main challenge that the MNCs are facing in todays world is Political/regualtory in nature. A changing regulatory environment is always a concern for the business. With change in regulatory environment, the businesses need to reallign their operations and doing so can increase the cost to the business. The regulatory framework of any country remains constant when there is political stability. With change in government in any country, the policy frame work also changes, affecting the regulatory framework. In todays world due to the political instability in various corner of the world and the econmic downturn associated with it, is affecting the businesses to operate in a stable environment. Another major challenge could be economic challenge. Any company able to prosper when the country, they are doing business in, is economically sound and stable. With global depression spreading over various countries, some even adding upto the defaulter list, the challenges for MNCs to sell their product and services to gain profits are decreasing. As the global economical condition is detoriating, the disposable income in hands of consumers are decreasing, inturn decreasing the demand for product or services required. Hence, decreasind the profit margin for MNCs..

1. In your opinion, what are the biggest challenges facing MNC
Solution
MNC or Multinational Corporations operate in more than one country and deliver its products or
services worldwide. As these corporations operate in beyond a particular geography, they gets
affected by challenges i.e. economic, political, technological and various social challenges that
exists in countries they operate.
The main challenge that the MNCs are facing in todays world is Political/regualtory in nature. A
changing regulatory environment is always a concern for the business. With change in regulatory
environment, the businesses need to reallign their operations and doing so can increase the cost
to the business. The regulatory framework of any country remains constant when there is
political stability. With change in government in any country, the policy frame work also
changes, affecting the regulatory framework. In todays world due to the political instability in
various corner of the world and the econmic downturn associated with it, is affecting the
businesses to operate in a stable environment.
Another major challenge could be economic challenge. Any company able to prosper when the
country, they are doing business in, is economically sound and stable. With global depression
spreading over various countries, some even adding upto the defaulter list, the challenges for
MNCs to sell their product and services to gain profits are decreasing. As the global economical
condition is detoriating, the disposable income in hands of consumers are decreasing, inturn
decreasing the demand for product or services required. Hence, decreasind the profit margin for
MNCs.