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Maximization of profit is the only motto of the mncs, paying a little heed to social obligation. The recent case of Swiss drug major Novatris is a case worth mentioning. They declined to reduce the prices of their branded cancer drugs even for the poor patients who can ill afford to buy them at astronomical price. They treat their employees to get return of every penny paid to them by harshest means.

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11y ago
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12y ago

1.There is a disperity of income

2.Biased government policies

3.during loans a company has to shift its assests to the mother country.

4.pressure on government by the investors.

5.Scarcity of raw materials.

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