In your opinion, what are the biggest challenges facing MNC’s in today’s economy and why? Allow for political, technological, and economic challenges.
There are numerous challenges faced by MNCs while challenging in the global dynamic business environment today. One of the chief challenges today is being global while acting locally by considerate the culture of setting in which they control (Firoz, Maghrabi & Kim, 2002). It is dynamic for firms to appreciate the local culture to convey with local suppliers, government and other stakeholders. Additionally considerate the moral and ethical values of targeted clients are also vital so that companies can market the right product to the right market in the right manners. Another challenge for MNCs is economic and political situation of the country in which they operate since political volatility may lead to economic volatility with changing inflation rates, taxes, regulations, exchange rates etc. Another challenge is participating marketing strategies rendering to the cultural values of the region in which the MNC operates so that no blunders might be dedicated such as the case of Nestle in Africa. Competing with local merchant is also a grave challenge since MNCs need to differentiate their merchandises in quality and price to compete with local competition that have superior knowledge of the country and people. Since MNCs employ people from a miscellaneous cultural contextual therefore the managers need to create interaction through their workforce.