1)Multinational corporations are often unable to deal effectively with important issues in the host country. The criticisms documented are often countered by evidence supporting MNCs’ positive impact on developing countries. For instance, MNCs ‘play a vital role in linking rich and poor economies and in transmitting capital, knowledge, ideas and value systems across borders’. In addition, MNCs can facilitate the efficient use of resources, transfer modern technology and increase production capacity in developing countries. As a result, MNCs contribute to stimulating the economy of developing countries and to bridging the gap between the rich and poor countries. It is very simplistic to assume that the power of MNCs can go uncontested. The recent increased economic and political power of MNCs has exponentially raised public expectations. MNCs are expected to manage integration of parent company strategies with subsidiaries, address the expectations of local communities, global and local competitors, spur technological development, and achieve economies of scale. Particularly, MNCs operating in developing countries face issues like ‘underdeveloped institutional environment, weak public governance, widespread bribery and corruption, lack of regulatory legislations and rules, public transparency and respect for human rights’. It has become highly desirable to develop ethical standards such as CSR practices to gain credibly in the world of business. In addition, pressure groups and activists have highlighted social inadequacies and inequalities, social cost and unregulated global production processes of MNCs and reacted to these issues through ‘consumer boycotts and media campaigns’. As a result, international organisations such as the United Nations Organization (UNO) and the Organisation for Economic Co-operation and Development (OECD) have established rules and guidelines to regulate the operations of MNCs and to encourage them to adopt socially responsible behaviour. The media and NGOs have also actively brought to light the social and environmental impact of many large MNCs. Consequently, MNCs have also begun to assess their role and placed themselves at the forefront of the social responsibility agenda through sponsorship, public relations exercises, dialogues and change in business policies. It can be concluded from the above discussion that although MNCs can be considered as a key institutional actor in an expanding CSR agenda, they are also blamed for much of the social and environmental disruption in the modern world. Scholars have also recognised that relatively little is known about the management of CSR by MNCs in the context of developing countries. In addition to this, the previous studies of CSR have primarily focused upon survey based, whereas the approach of exploratory case study has been ignored.

Multinational companies (MNCs) — or multinational corporations — run their business operations in multiple countries. These companies often have headquarters in one country and then assets and facilities in at least one other country. Most often, they’ll place their central office in a developed nation such as the United States but might produce their goods elsewhere. These companies contribute to the economy of more than one country and create jobs for those countries’ citizens. Multinational companies represent some of the largest firms in the world. This type of business model sometimes garners some criticism for their treatment of employees in developing nations and for moving jobs overseas.
Let’s say an American family has a vacation home in Canada. Their primary residence is still their home-base — It’s where they spend most of their time and keep their valuables. But they visit their vacation home as well, where they contribute to the local economy by visiting the shops and restaurants. Similarly, a multinational company has its home base in one country where the executives work and where they make the big decisions, but have a second home in another country (or multiple other countries) as well.

Multinationals generally respect human rights more than local firms.

Respect of human rights by local firms is influenced by the robustness of the institutions in the region where they operate.

The density of multinationals in a region has a negative impact on the respect of human rights by local firms.

2)

PART A :
b. $160,000, but not $170,000.

THe PV of three cash flows
= 50,000/1.05 + 60,000/1.05² + 70,000/1.05³
= 47619 + 54422 +60468.7
= 162509.7 $

YOYO will not pay 170000 because that exceeds the PV and he will go into losses . Any amount beloew the pV will be paid by him . THerefore option b) is correct  

PART B :
D. You will receive $1,000 in 5 years and the annual interest rate is 5 percent.


PV = Fv / (1+r)ⁿ
PV of all options

PV of A)
= 2000/1.1¹⁰
= 771.086

PV of B)
= 1000/1.03¹⁰
= 744.1

PV of C )
= 2400 / 1.08¹⁵
= 2400/3.17216
= 756.58

Pv of D)
= 1000/1.05⁵
= 1000/1.276
= 783.5 $

D is the correct option as PV is highest at 783.5 $