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Chapter
7 Outline
Critical Discussion Questions
- Explain how the political ideology of a host government
might influence the negotiations between the host government and a foreign
MNE.
- Under what circumstances is an MNE in a powerful negotiating
position vis-à-vis a host government? What kind of concessions
is a firm likely to win in such situations?
- Under what circumstances is an MNE in a weak negotiating
position vis-à-vis a host government? What kind of concessions
is a host government likely to win in such situations?
- Inward FDI is bad for (i)
a developing economy and (ii)
a developed economy and should be subjected to strict controls! Discuss.
- Firms should not be investing abroad when there is a
need for investment to create jobs at home! Discuss.
- Do you think the successful conclusion of a multilateral
agreement to liberalize regulations governing FDI will benefit the world
economy? Why?
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