MNEs face many challenges conducting business in countries around the world. One of the main challenges is government demands, complying with laws and regulations.

Briefly explain the interactions between host governments and MNEs. Compare and contrast the relationship between host government and MNEs. (20 marks)

Researchers argued that MNEs do more harm than good to domestic companies. Do you agree with them? Do you think there should be highly strict government intervention towards MNEs to protect domestic companies? (10 marks)