Question

Should MNCs Avoid DFI in Countries without Child Labor Laws?

Should MNCs Avoid DFI in Countries without Child Labor Laws?

Homework Answers

Answer #1

Yes, MNCs should avoid Direct Foreign Investment without Child Labour laws because it
a) The operations in foreign countries might be against the labour laws of domestic country or other foreign countries and may create a negative image in the domestic country.
b) In case of any mishap with children  in any country the image of the company takes a beating with regard to child issues and may lose sales in countries where it adheres to Child Labour laws. It will attract more scrutiny by domestic country and other countries.
c) Moreover, from ethical point of view MNC should avoid such countries as there might be chances of child abuse.

Please Discuss in case of Doubt

Best of Luck. God Bless
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