Should MNCs Avoid DFI in Countries without Child Labor Laws?
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.
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