8 Multinational Enterprises as a Source of Conflict Complete the following paragraph to explain the effect of multinational enterprises on a host nation s economy Assume a large brewing company based in Ireland where the corporate tax is 37 decides to relocate some production of refractometers to Cuba where the corporate tax is 8 If the parent company from Ireland purchases refractometers from its subsidiary in Cuba at grossly inflated prices the result is a impact on Cuba s economy and a impact on Ireland s economy As a result the governments of Ireland regarding the Irish subsidiary locating in Cuba and Cuba are likely to experience Now assume that a major national election takes place in Cuba As a result the Aquamarine party has come to power Assume that the Aquamarine party s main political stance is redistribution of all brewing profits through increased corporate taxes Based on this knowledge of the Aquamarine party s politics businesses in Ireland are likely to the election of the Aquamarine in Cuba Which of the following are the most likely courses of action for Irish brewing businesses with operations in Cuba as a result of the Aquamarine party rising to power Check all that apply The brewing businesses will shift a larger portion of their production to Cuba Over concerns of expropriation the brewing businesses will attempt to interfere with Cuban politics More businesses in the brewing industry will locate multinational enterprise operations in Cuba The brewing businesses will withdraw operations from Cuba The brewing businesses will take no action to engage in Cuban politics