Why Do Multinationals Seek Out Joint Ventures?

Magnus Blomstrom, Ari Kokko and Mario Zejan

Chapter 3 in Foreign Direct Investment, 2000, pp 30-41 from Palgrave Macmillan

Abstract: Abstract Over the years, we have witnessed an increasing desire in a number of developing countries to exercise greater control over the activities of multinational corporations. Many countries have started to frame the environment within which these firms operate and have introduced various performance requirements for their behaviour. Special attention has been given to policies regarding the transfer of technology. A number of measures intended to encourage multinational firms to transfer more technology have been introduced over the years, including requirements for a certain degree of local participation in the ownership of the MNCs’ affiliates. By forcing the multinationals to ‘unbundle the package’ of inputs they bring to the host country, it is believed that a host country can enable local firms to obtain access to these inputs without the traditional direct investment.

Keywords: Foreign Direct Investment; Host Country; Joint Venturis; Foreign Market; Parent Company (search for similar items in EconPapers)
Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-0-230-59861-4_3

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DOI: 10.1057/9780230598614_3

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