Companies operating in developing countries are susceptible to private politics because groups in developed countries closely monitor operations in these countries.

Question

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Private politics refers to the actions of nongovernmental organizations, activist groups, and other stakeholders who try to influence the behavior of firms through activities such as protests, boycotts, and social media campaigns. Some of these groups in developed countries closely monitor the operations of multinational corporations (MNCs) in developing countries, particularly those that are involved in industries such as oil and gas extraction, mining, and agriculture that have an impact on the environment and local communities. As a result, MNCs operating in developing countries may be more vulnerable to private politics than those operating in developed countries.

Companies Operating in Developing Countries Are Susceptible to Private Politics