1. Power of multinational enterprises (MNEs) increased at the expense of government power, sovereignty, and ability to regulate business.
2. MNEs externalize some of their costs to countries.
3. Competition for factories and foreign direct investment (FDI) result in too many concessions to MNEs by some governments.
4. Some MNEs influence local government policy and threaten to leave if their demands are not met.
5. MNEs pay fewer taxes to governments and incorporate where the tax rate is lowest, depriving their own country of revenue.
6. Governments are pressured to reduce tax rates and decrease social benefits that may affect stability. (© 2014 by Jensen DG. Mañebog)
