Government Intervention in Less Developed Countries: The Experience of Multinational Companies

Thomas A Poynter
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Thomas A Poynter: University of Western Ontario

Journal of International Business Studies, 1982, vol. 13, issue 1, 9-25

Abstract: It is a fact of international business that governments intervene in the operations of foreign direct investors. These government actions create a high level of uncertainty in international planning and are very costly to the foreign investors. It appears, however, that not all firms experience the same degree of intervention. Within almost all nations, the government appears to intervene in some foreign companies more than in others. At one extreme some firms are forced out of the nation, while at the other extreme firms tend to grow and prosper. The purpose of this paper is first, to explain these different experiences of foreign firms, and then to address the question: How can foreign firms reduce the amount of intervention they experience? The conclusions are based on the intervention histories of more than 100 firms.© 1982 JIBS. Journal of International Business Studies (1982) 13, 9–25

Date: 1982
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