You are a vice president of a multinational corporation headquartered in North A
ID: 2820303 • Letter: Y
Question
You are a vice president of a multinational corporation
headquartered in North America. You are asked to visit
Latin America to meet with government officials to con-
sider a location for a new factory. On your arrival, you
are met at the airport by one of your hosts, who spends
some time that day taking you on a tour of the city and
getting acquainted. That evening you are invited to his
home for dinner with government representatives. After
dinner, one of the guests who works for a key government
ministry asks what you think of your company’s role in
his country as an employer, taxpayer, and corporate good
citizen. He makes it clear that his country is no longer a
“puppet” of the North Americans. He asks you to show
him that you understand his concerns and to show him
that your company will be respectful of his country’s cul-
ture, environment, natural resources, and local laws. How
do you respond?
Explanation / Answer
In such a situation, as a VP I would take up the following steps:
1. Make sure that the key outcomes of the factory are highlighted to the officials.
2. The ancillary gains such as the FDI, creation of Jobs, Better Products for Local use shall be shown to the officials.
This situation is subjective to how important is this factory to the MNC as the government is already in a non-cooperative mindset. If the benefits from the factory are sufficient enough to turn the mentality of the people and the government of this Latin American country, then I as the VP shall get involved in the project myself and ensure that the results for the local economy are as promised to the government.
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