International Business 3rd Edition - Charles HillIrwin McGraw-Hill
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 Chapter 7: The Political Economy of Foreign Direct Investment



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Critical Discussion Questions

  1. Explain how the political ideology of a host government might influence the negotiations between the host government and a foreign MNE.

  2. Under what circumstances is an MNE in a powerful negotiating position vis-à-vis a host government? What kind of concessions is a firm likely to win in such situations?

  3. Under what circumstances is an MNE in a weak negotiating position vis-à-vis a host government? What kind of concessions is a host government likely to win in such situations?

  4. Inward FDI is bad for (i) a developing economy and (ii) a developed economy and should be subjected to strict controls! Discuss.

  5. Firms should not be investing abroad when there is a need for investment to create jobs at home! Discuss.

  6. Do you think the successful conclusion of a multilateral agreement to liberalize regulations governing FDI will benefit the world economy? Why?



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