Should MNCs Avoid DFI in Countries with Liberal Child Labor Laws? WHO IS CORRECT

Question

Should MNCs Avoid DFI in Countries with Liberal Child Labor Laws?

WHO IS CORRECT? Use the Internet to learn more about this issue. Which argument do you support? Offer your own opinion on this issue.

POINT: Yes. An MNC should maintain its hiring standards, regardless of what country it is in. Even if a foreign country allows children to work, an MNC should not lower its standards. Although the MNC forgoes the use of low-cost labor, it maintains its global credibility.

COUNTER-POINT: No. An MNC will not only benefit its shareholders, but will create employment for some children who need support. The MNC can provide reasonable working conditions and perhaps may even offer educational programs for its employees.

Explanation / Answer

Answer: This is a well-documented controversy which generates interesting discussion. Some students will likely support the point while others will support the counter-point.

There are some obvious issues that an MNC would need to consider, such as:

• How old does an employee have to be?

• Should it attempt to hire older workers first?

• What wage is reasonable for a child?

• Are there any child labor laws enforced by the country?

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