Question

What are the most costly expenses for MNC and in emerging markets?

Answer 1

Multinational companies might face many challenges related to infrastructure, organizational corruption , training to local hires , cultural differences and some hidden barriers in conducting the smooth flow of business operations. In emerging markets like India, Bangladesh, China , Africa etc. , MNCs may require to spend money on following cost incurring area:

1) Investment for infrastructure or setup to organizational premises

2) Training and development cost for local employees as well as cross cultural training needs for home country personnel.

3) Clearness fee for environmental and other permits

4) Many times spend money to corrupt government authorities .