What are the political barriers multinational company face in third world countries?

Answer 1

The main political barriers is appeasing multiple parties of political systems in some third world nations. Many face more than racial, cultural and religious segregation the most conflicting is political segregation - as contracts made under on political system may be entirely broken or altered via a new elected controlling political system.

You may include finding dividing lines of operations within that nations government infrastructure system where various political parties may have control over labor while another has control over customs operations or another political party system control over transportation. This establishes playing various parties and same time being neutral enough in not offending the other party's political rivals.

Each political party seeking amass greater political control in the third world nation does so with financial manipulation this may leave a multinational company having to conduct in the acts of limited bribes in the form of political funding to assure smooth operations in these countries. There is also another danger as some parties do conduct their operations on the double edge sword of social manipulation and even terrorist/criminal like activities.

So for a multinational company that must conduct business may in fact must balance actions to ensure they are not aligned with terrorist/organized crime activities. Other parties maybe organized criminal structures in nature are actual regional controls as some national established governments strip resources without retribution to these regions. Therefore the main political party in place may too be corrupt. These conflicts are on mostly a social nature due to the weak government infrastructures in place allowing in various regions lacking the nations established government that permits shadow government operations of various political parties that may or may not be recognized by the main government of that nation.

***If one must do business in these pocket regions due to access to critical resources then its finding an established balance as doing business aligned as dealing with corruptions as ethically as possible including possible infrastructure support where the main nations government fails! The same time not threatening to create a destabilizing conditions to the nations government or main economic structure in accordance to national U.N. Policies or create a negative image via ones own main national origin. ****

The main difficulty is not establishing a negative global image as a company whose operations inflict major political consequences as doing business and project an image of manipulating political agenda to conduct their business.

**I can't stress this enough where these divides causes serious altercations of conflict that pose the risk of either destabilizing a nations government or if conducted wisely may enable securing a nations political and economy future as well as the image of the global national corporations.**

Most global multinational corporations aren't in lined in securing the additional expense in global political diplomatic activities due to its primary objective the corporations bottom line!

Yet its a wise action to do so by establishing humanitarian infrastructure support or other low grade actions that may establish a multinational corporations image of "Good Will" in operating in these countries. Very seldom is this done as very few have the skills/skilled personnel to negotiate more positive actions into place.