answersLogoWhite

0


Best Answer

Because they can exploit the local work force. Most of the countries in South America are either less economicaly developed countries (LEDC's) or, in the case of Brazil, newely industrialised countries (NIC's). The problem with countries in this development band is that they have very few workers rights. there is no miminum wage, very few laws over health and safety, little if any paid leave, and they can fire people whenever they want. Furthermore, MNCs want to have facroties and distributories near to their markets. with Brazil rapidly developing, companies like Fiat are now selling in huge quantities. Another reason is that the governments often give deals to TNCs, such as help with setting-up costs, tax deductions and the like.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: Why do you think that multinational corporations like to invest in companies in south America?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

They invest in companies with a business model and social mission that they support?

One of the social responsibilities of corporations is that they invest in companies with a business model and social mission that they support. In so doing they give back to the society.


Did mormon church invest in Bain Capital?

No. The Church of Jesus Christ of Latter-day Saints (the "Mormon" church) does not invest in corporations or secular companies. The Church invests in property and real estate, or in companies which it owns and operates (such as Deseret Book, a religious book store).


What are people who invest in corporations by buying stock called?

Stockholders or investors. fools if they invest in the wrong one.


Is the present economic condition of India suitable for a multinational company to invest in India?

www.chitranshtravels.comHi....Yes, what i think this is the right time to enter into Indian market where maximum assets as on day are undervalued, so best time for the companies


How do you begin with stock trading?

Read about the companies you wish to invest in before you invest. Stay away from high risk companies.


Why do you have the IDA Ireland?

The Industrial Development Authority Ireland is there to try to encourage foreign companies to invest in Ireland.The Industrial Development Authority Ireland is there to try to encourage foreign companies to invest in Ireland.The Industrial Development Authority Ireland is there to try to encourage foreign companies to invest in Ireland.The Industrial Development Authority Ireland is there to try to encourage foreign companies to invest in Ireland.The Industrial Development Authority Ireland is there to try to encourage foreign companies to invest in Ireland.The Industrial Development Authority Ireland is there to try to encourage foreign companies to invest in Ireland.The Industrial Development Authority Ireland is there to try to encourage foreign companies to invest in Ireland.The Industrial Development Authority Ireland is there to try to encourage foreign companies to invest in Ireland.The Industrial Development Authority Ireland is there to try to encourage foreign companies to invest in Ireland.The Industrial Development Authority Ireland is there to try to encourage foreign companies to invest in Ireland.The Industrial Development Authority Ireland is there to try to encourage foreign companies to invest in Ireland.


Which corporations allows its shares to be purchased by anyone who chooses to invest in the business?

publicly owned corporation


What corporations allows its shares to be purchased by anyone who chooses to invest in the business?

Public Limited Company


Do Insurance companies invest in the stockmarket?

yes


Is it good to invest in stock market when sensex decreased low?

Investing in fundamentally good companies is good. you must do your analysis and invest only in good companies. Remember to invest in a staggered fashion and invest in small quantities to avoid huge losses.


How do you invest on food stuff?

A person can invest on food stuff items by buying stock in the companies.


Who was allowed to loan money to private corporations?

It depends on the economy in question, but generally speaking, anyone (be it a natural person or a corporate person) who has capital can invest it or loan it to private corporations.