Business Environment, 1st Edition by Pearson

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Part VI: The Industrial Sector

development and its consumers, there is also a perception that a

sovereign country can curb the harmful effects of MNCs’ operations

with some amount of determination on the part of the government

of the host country. After all, they are useful for a country’s devel-

opment with their investments, technology and managerial skills.

Developing countries such as India have tapped their potential and

curbed their unhealthy practices, when needed. The following are

some of the measures through which MNCs can be regulated.

(i) Threat of nationalization : MNCs are kept under check through

the power of a country to nationalize their units. The threat of

nationalization always hangs like a Damocles’ sword ...