Author Question: You are the president of a less-developed country (LDC) on an island in the Pacific Ocean. A wealthy ... (Read 122 times)

mp14 · **on:** Jun 24, 2018

You are the president of a less-developed country (LDC) on an island in the Pacific Ocean. A wealthy multinational company (MNC) wishes to open a factory on your island. Discuss the advantages and disadvantages and then make a decision about whether to allow the factory or not.

Question 2

Your long-time friend Dominic Chin has approached you to enter a partnership with him to create and market computer software. You have outstanding programming skills and Dominic is outgoing and has outstanding human relations and sales skills. What should you consider before going into partnership with Dominic?

carlsona147 · **Reply #1 on:** Jun 24, 2018

Answer to Question 1

Answers should include the following concepts:
(1) Advantages: The MNC could provide jobs, products, services, and even improved infrastructure for the island nation.
(2) Disadvantages: The MNC could be the dominant economic power, making the country totally dependent on its presence and success. The MNC could also influence or even control the government.
(3) The decision about allowing the MNC to open the factory will vary depending on student perceptions of MNCs. Students might acknowledge that there is not enough information provided to decide or state that the reputation and history of the MNC could be a determining factor.

Answer to Question 2

Answers should include the following points:
(1) There should be a firm understanding and written agreement about investments and sharing of profits and losses that fairly represents the investment of money and ability to the partnership.
(2) There should be full consideration of the risks of going into business with a friend because of the possibility of disagreements and the consequences of unlimited liability.