Due to their excessive profit potential, MNCs have the financial capacity to remunerate their personnel higher than the industry average with many fringe benefits. Thus, they hire away the most talented personnel which inhibit the development and expansion of local businesses and local industries.
Of course, these complaints are not limited to the host countries alone. Some MNCs also face difficulties for which they have reasons to complain about. For example, some countries have strict foreign currency laws which inhibit repatriation of most profits back to the home country, requiring them to reinvest a major portion of their profits in the host country.
Other MNC complaints against the host country include having to buy raw materials at inflated prices and pay above market prices for labour and services. Sometimes, labour problems can shut down operations and governments may get involved in favour of labour. Some officials may have to be continuously bribed to keep the operations running.
Some MNCs faced considerable difficulties in joint ventures in China because of major political, cultural and economic differences. Chrysler Company faced many frustrations when they tried to manufacture Jeeps in China.