BU491 Chapter Notes - Chapter 2: Cpg Site, Import Substitution Industrialization, General Agreement On Tariffs And Trade
Document Summary
Often no home country key inputs were available to companies wishing to expand in new industry segments and labour intensive industries turned to international markets for cheap labour. Government demands- interactions between companies and host governments have had many attributes of classic love/hate relationships. The mne benefits the host government by being: an important source of funds, technology and expertise that could help further national priorities such as regional development, employment, import substitution and export promotion. The government benefits the mne by being: the key to local market or resource access, which provided new opportunities for profit, growth, and improvement of its competitive position. Mne operations often cause social disruption in the host country through rural exodus, rising consumerism, rejection of indigenous values or a breakdown of traditional community structures. Mnes can pose a political threat because of their size, power and influence.
