Discuss the ethical issues associated with multinational corporations.

MNCs are the subject of much ethical debate, and their impact on countries where they do business is controversial. Both American and European labor unions argue it is unfair for MNCs to transfer jobs overseas where wage rates are lower. Other critics charge thatmultinationals use labor-saving devices that increase unemployment in countries where they manufacture. Their size and financial clout enable them to control money, supplies, employment, and even the economic well-being of less-developed countries. Critics believe the size and power of MNCs create ethical issues involving the exploitation of both natural and human resources. Critics also accuse MNCs of exploiting the labor markets of host countries. The activities of MNCs also raise issues of unfair competition. However, differences in culture, protectionism, and political and economic stability are challenging MNCs growth. Although MNCs are not inherently unethical, their size and power often seems threatening to people and businesses in less-developed countries. The ethical problems MNCs face arise from the opposing viewpoints intrinsic to multicultural situations.