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Common Threats to Multinational Companies and Powerful Citizens

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Common Threats to Multinational Companies and Powerful Citizens
Corruption, violence, fueling terrorist organizations, unstable regimes, ransom, and security concerns are common issues faced not just by multinational corporations but also the citizens of many developing nations. Some people blame poverty as a reason, some people blame political instability and some people point the finger at the hunger for power for some of these issues that many third world nations are facing. How can people cope with such situations? How can the executives of companies and leaders of countries eliminate or find alternative solutions for such problems? Take Chiquita for example. The company had to pay a ransom to a rebel group in order to protect its investments and its employees in Columbia. After 9/11, the rebel group was classified as a terrorist organization and Chiquita ended up paying a $25 million penalty for fueling terrorist organizations. This paper will explore my thoughts on the situation and will provide some solutions or work-around methods for issues describe above. Some of the solutions might be noteworthy but some readers might label others as unethical solutions.
If I was the CEO of a multinational company, after making sure that the business will benefit, my first priority would be to check on the stability both economic and cultural of the country we are about to set up shop in. For the sake of this paper, I will use India as the country that I am going to set up my plants and people to run operations. I would look into the economic makeup of the country and specifically the region and area my offices are located in. There are many things happening in India which a multinational corporation needs to keep in mind. First we will explore these “termites” and then talk about ways of extermination. I refer to these social issues as “termites” because these issues do the same job as termites do – makes holes in the organization and then the foundation collapses after they have been plagued by such issues.
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