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PUBLIC POLICY (HOME GOVERNMENT (Governments might block outwards…
PUBLIC POLICY
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SUPRANATIONAL APPROACH
Host have weak bargaining power vis-a-vis MNES, L-specific advantages are not enough to attract MNES, counteracted by other more powerful governments
Assisting host governments to reevaluate domestic policies (UNCTAD, ILO)
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HOST GOVERNMENT
Greenfield investments
Achieving cost effective FDI through fiscal incentives: tax holidays, subsidies, investment grants, loans, regional grants
Exit conditions prevent MNES from leaving when they want, reduce risk of having MNES
M&A
Different economic impact from that of Greenfield. Host countries deal with M&A as an extension of the anti-competitive legislation
HOME GOVERNMENT
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Governments recently more relaxed about outward FDI: positive effects and emergence of globalisation