A major ethical challenge of MNCs is that their firms' cultures and philosophies may differ from that of their host countries.

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MNCs often have headquarters located in one country, which can result in a clash of values and customs when these firms operate in other countries. This can lead to ethical dilemmas, as MNCs must navigate cultural differences and work to ensure their practices align with their host countries' expectations and standards. Failure to do so can result in lost business opportunities, legal penalties, and damage to the company's reputation.

A Major Ethical Challenge of MNCs Is That Their Firms