scholarly journals Multinationals And The Bargaining Dynamic Among Least Developed Countries

2018 ◽  
Vol 7 (1) ◽  
pp. 7-35
Author(s):  
Mauricio Lascurain Fernandez ◽  
Luiz Fernando Villafuerte Valdés

Most of the twentieth century, relations among multinational companies and the governments of the Least Developed Countries (LDCs) were seen as conflictive, mainly in the extractive sector, as the former were considered as highly exploitative. However, this vision has evolved by two essential factors: a) the acceleration of the process of economic globalization in the last 30 years and b) certain advantages LCDs have promoted to foster economic growth at the moment Multinationals Companies (MNCs) are installed in their territories. The major concern of national governments in the LDCs is that some MNCs have greater influence and negotiation power than governments themselves because of the infrastructure deficiencies and competitive advantages, placing them in an unfavorable position at the time to negotiate with MNCs. This paper tries to identify the bargaining dynamic among multinationals and LDC governments, and the effects on the latter ones. Key words: Foreign Direct Investment, Bargaining strategies, Economic globalization, least development countries, Theoretical approaches. Number of classification: JEL: F23, F51, F02, O10, B49     Recebido em: abril/2017. Aprobado em: maio/2017.

2017 ◽  
Vol 08 (01) ◽  
pp. 1750005 ◽  
Author(s):  
Sèna Kimm Gnangnon ◽  
Harish Iyer

This paper investigates two questions: first, how does countries' structural economic vulnerability (EVI) affect their foreign direct investment (FDI) inflows; second, how does EVI influence FDI inflows when host countries further liberalize their trade policies. The empirical analysis provides evidence that EVI influences negatively FDI inflows and that, in the context of greater trade policy liberalization, this vulnerability deters FDI only when it exceeds a certain threshold. These results call for enhanced cooperation between national governments and the international community to address developing countries, least-developed countries' EVI in order to ensure greater FDI inflows, which are critical for their economic development.


2020 ◽  
Vol 2 (1) ◽  
pp. p15
Author(s):  
Yeboah Evans ◽  
Yu Jing

With regards to the ongoing development in investment activities in the Economic Community of West African States(ECOWAS) and the entire African continent is because of institutional reforms and initiation of sound investment policies. Foreign direct investment(FDI) inflow and outflow severs as a source of capital formation for most developing and least developed countries. This paper provides an overview and analyses of the flow of FDI to the ECOWAS region by considering 16 nations under this region in determining their performance towards FDI attraction and their contribution to outward FDI across the globe by the use of the quantitative method. The outcome shows that there is a continuous decline in FDI inflow to the ECOWAS region over the past 10 years. The result also proves that Ghana and Nigeria are the major recipients of foreign direct investment inflows in the West African region. The result further indicates that Nigeria is the major contributor of outward FDI from the ECOWAS region. It is recommended that the region should increase its outward FDI.


2019 ◽  
Vol 17 (4) ◽  
Author(s):  
Selma Alves Dios ◽  
José Paulo Cosenza

This paper presents theoretical reflections whose purpose is to discuss the performance of Multinational Enterprises (MNEs) and the fact that the impacts of their activities are the result of their management, despite their focus on Corporate Social Responsibility (CSR). For this purpose, we reviewed some of the main CSR concepts and reference documents to identify in which way this type of organization could be contributing to global inequality. Additionally, we describe the characteristics of the general orientation of CSR in these companies. The main results indicate that when moving to less developed countries, MNEs take advantage of the existing unequal conditions of income and precariousness of labor and environmental rules. The construction of a favorable image through CSR contributes to MNEs success, but at the cost of a complex and intense process of concentration of wealth and deepening of social inequality and poverty.


Author(s):  
David L. Richards ◽  
Ronald D. Gelleny

This chapter investigates the relationship between economic globalization and government respect for two subcategories of international human rights known as physical integrity rights and empowerment rights. It begins with an overview of different theoretical approaches regarding the relationship between economic globalization and government respect for human rights. It then reviews research findings from the quantitative literature analysing this relationship. It also conducts an original study using quantitative methods to determine whether a developing country's ability to attract foreign direct investment is affected by its level of governmental respect for human rights. The results show that governments that respect their citizens' physical integrity and empowerment rights will be better able to attract foreign economic capital.


2011 ◽  
Vol 63 (2) ◽  
pp. 237-259 ◽  
Author(s):  
Biljana Pesalj

According to knowledge and network-based theories of multinational companies (MNCs), the main source of MNC competitive advantage is the creation and transfer of knowledge within the MNC system. The processes of knowledge creation and knowledge transfer are extensively investigated in the present literature. However, there are issues that are still underdeveloped, such as control and organizational mechanisms as a micro foundation of modern MNC theories. This paper is aimed at presenting an overview of the modern theoretical approaches of MNC competitive advantages from the managerial point of view. The applicability of these concepts is further considered in the case of MNC affiliates doing their business in transition economies in order to provide guidelines for future empirical research.


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