Question

do you think that the more foreign countries subsidize MNCS, the less that costs of capital will matter for decision making. Example, if I can get XX country to reduce costs and regulations and develop a great relationship for further investing, I'd continue it a cost saving over any other capital cost?

Answer 1

Answer

✓ if more countries allow for reduced costs and regulations for MNCs I would think it a more liberalised way to support these organisations, not a cost saving phenomenon. Because, capital costs or other associated costs decides how the business needs to run with what resources and investments. Liberalised and loose regulations will greatly help to earn good market and to get established is a short time, but the costs need to be incurred on developing the business and to invest in various suitable Avenues. Though subsidising helps in reducing some fees and costs, but that doesn't mean it will cut major expenses.