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1. Language barriers (semantic barriers
Some articles may need to be translated and this could hamper communication.
2. Cultural attitudes towards such factors as time and productivity in some parts of the world may be different. For example the Swiss are known to be good time keepers.
3. Lack of the technical skills required to run the machinery.
4. Scarcity or differences in the standards of raw materials parts of equipment and other facilities. It may be difficult for the MNC to obtain raw materials locally.
5. Hostile or unstable political climate:- Frequent changes of government authority and policies can cause unpredictable environment to MNCs in some cases the government may be unable to protect its own nationals.
6. Fluctuations in the international economy:- Inflation and currency devaluation have major effects on the cost and profit of MNC
7. Unfamiliar legal system:- Laws concerned with banking, taxes differ from country to country.
8. Differences in the accounting systems and this introduces a problem with reporting and com-paring operations in different countries.
9. Custom duties (tariffs and health and safety practices imposed by different government make international corporations more difficult.
Titany answered the question on October 26, 2021 at 12:04
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