Question

What are the consequences for a multinational company?

Answer 1

Consequences sequences for multinational company - O Muctinational companies increases thee's profit margin by "transfer pricing". The main objectine is to reduce tax liability Low skilled workers enrotnement in the production process will reduces the quality of product so that MNCs will lay off" those employees. "Trade & tariff" on goods in the cross bordes transaction will cery export duties. Hence Gort can collect tax on cross border Shepments. A Economde uncertainteres & reisk" factors will offeet the innestment Portfolio of the MNC. Hence the corporation will use hedging Method to mitigate the recession and inflation rask. "Legal documentation" and "cross bordere agreement” as required fore merger and acquisition business and johnt venture firms. Hence, these are the major consequences for MNCs. All the best for your exam ! Thank you!