Submitted by: Submitted by AnaLokovsek
Views: 759
Words: 4776
Pages: 20
Category: Business and Industry
Date Submitted: 04/30/2012 04:00 AM
University of Ljubljana- Faculty of Economics
Course title: Globalization and multinational firms
Lecturer: dr. Črt Kostevc
Graduate programme: Tourism Masters Programme
SEMINAR PAPER
MULTINATIONAL CORPORATION AND THE ROLE OF THE STATE
Student: Ana Lokovšek
Ljubljana, June 2011
PAGE INDEX
1 MULTINATIONAL CORPORTION 2
1.1 Definition of MNC 2
2 FOREIGN DIRECT INVESTMENT 3
2.1 Definition of FDI 3
2.2 Motives for FDI 3
3 ARE MNCs TAKING CONTROLE ON THE STATE? 5
3.1 Examples of negative effects of MNCs in foreign countries 5
4 THE MNC – HOST GOVERNMENT RELATIONSHIP 7
5 COOPERATION 8
5.1 Four levels of cooperation 8
5.2 Building blocks 9
5.2.1 Hypothesis 10
5.2.2 Findings 12
6 CONCLUSION 14
REFERENCES 15
TABLE INDEX
Table 1: Host country determinants for FDI 4
Table 2: Determinants of MGR: Standardized regression analysis (N=131)* 13
Table 3: Consequences of MGR: Multiple regression analysis (N=131)* 13
INTRODUCTION
Recent advances in technology, information technology, coupled with deregulation and market liberalization worldwide, have unpredictably increased in the growth of multinational corporations (MNCs hereafter). Before MNCs were creations of wealthy countries like United States and United Kingdom. But today many of the newcomers are based in the developing countries and many developing-county firms have expended abroad. To have a company in a foreign county the relationship between MNCs and host-governments is needed.
The relationship between governments and multinationals is characterized by a complex distribution of benefits. MNCs increasingly demand the "freedom" they need to optimize their operations across borders, with the goal of lowering their total costs and continuously upgrading quality. Their key bargaining chip in dealing with host governments is that they have the option not to...