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A multinational Corporation (MNC) is a business venture that offers goods and services in two or more countries. MNC has its management headquarter in a home country but spreads its operations in the other host countries. MNC largely influence economies of both the local and international countries across the world. So far MNC is the major factor towards building good international relations and globalization.

 

As much as Multinational Corporations are focused to be constructive to the local societies and to achieve their objectives and potentials, they experience a number of challenges in their business operations. The commonest challenge that faces the Multinational Corporations is lack of international legal framework to regulate and safeguard their activities and operations worldwide. Fully aware that trade related affairs are squarely subject to agreement between various stakeholders, countries and regions, MNCs are bound to operate at high levels of integration matchless of law in  countries that are not signatories to the World Trade Organization. The reality that a business enterprise based in one country must obey the trade laws in the home country as well as those of their individual host countries results into a complexity of operations by the multinational corporations.  

 

 In some host counties where there are inadequate laws and policies to regulate international trade, the MNCs should engage the local authorities in the subsequent enactment of trade laws, policies and regulations that are of mutual benefit to them both. The existence of these laws will protect global companies against unpredictable changes in foreign laws and policies that would pose a threat to their future growth and expansion. Secondly, MNCs should restrict their operations in countries that are signatories to the International trade agreements to ensure consistency and standardization of trade.

 

 

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