Question

In terms of corporate social responsibility, MNEs should ______.

a. get involved in the internal political affairs of the host country.
b. reinvest some profits in the host country.
c. offer bribes and gifts to public servants whenever required.
d. avoid giving advance notice of plant closures.

Answer 1

Answer: b. reinvest some profits in the host country.

Step-by-step explanation:

Multinational Enterprises (MNEs) usually reinvest part of their retained earnings into the existing operations in the host country in terms of corporate social responsibility. These retained earnings are important financial investments for the growth and expansion of its' subsidiaries, because the financial markets in the host countries are generally underdeveloped as compared to foreign home countries.