Globalisation and New Realities for MNE-Developing Host Country Interaction

Rajneesh Narula and John H. Dunning
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John H. Dunning: MERIT

No 11, Research Memorandum from Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT)

Abstract: Globalisation has resulted in the increased mobility and knowledge intensity of the ownership advantages of MNEs, which they increasingly seek to utilise in conjunction with the created-asset intensive location advantages of countries. We highlight that that the relative opportunity sets (and thus bargaining positions) of both developing country host governments and MNEs varies by the stage of economic development and the motive of FDI. In general, globalisation has shifted the balance in favour of the MNE, and governments increasingly need to provide unique, non-replicable created assets in order to get foreign firms to be ''locked into'' these locations.

Keywords: international economics and trade (search for similar items in EconPapers)
Date: 1998
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Persistent link: https://EconPapers.repec.org/RePEc:unm:umamer:1998011

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