Question

Why multinational banking enter to host countries that with less rules and regulation?

Answer 1

The legal envoronment of any country plays a very vital role in the business is done in a country. The MNCs like to enter the countries with more certain, flexible and business friendly environment. Similarly, Multinational nbanking enter to host countries that with less rules and regulations, so that they do not have much restrictions on their operations. More rules and resgulations makes economy more complex and difficult to do business. Being in less regulative environment, the banks can feel free for investments.

Less rules and regulations encourage banks to enter the economy and gradually increase investment with increased knowledge of the market. It also reduces the risk and uncertaninity banks may face while doing their operations.