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1. The always seek to minimize the payment of taxes by avoiding high tariffs, but not always in honest
ways;
2. They always seek to eliminate or control their competition by acquiring businesses or purchasing
companies, which leads to the creation of huge monopolies;
3. They always seek to reduce their labor costs by using foreign labor at a cheaper price than they would
in their home country. This often results to loss of jobs in their home country;
4. They always seek to avoid all environmental restraints. During the process, this results to the rapid
depletion of natural resources, which undermines the sustainable and long-term use of the environment
where they are operating in;
The following are the predatory profit making schemes of TNC (West’s Encyclopedia of American
Law 2008; Polychroniou 2014; Forum ZFD and Commission on Higher Education Regional Office XI
2013), namely:
5. They are often tempted to sell dangerous and harmful products and use
cheap and inappropriate and environmentally dangerous technologies to the
detriment of their laborers, consumers, and surrounding local residents;
6. They are not loyal to all of the countries they operate in. They are mainly
concerned about the best for them at the expense of the values and standards
of their host countries; and
7. They exercise political influence in weak governments, such that they use
their power to convince some governments to support their unethical profit-
making practices.
Reasons why developing countries still accept TNCs in their
country despite of numerous unethical profit-making practices: