This article reviews and integrates representative literature on the exceptionally broad topic of multinational enterprises (MNEs) and public policy. It considers the literature on MNEs and public policy as it has emerged since 1970 and makes projections ahead to the relevance of this literature for the year 2020, which is the target date for the members of the Asian-Pacific Economic Community (APEC) to realize full trade and foreign direct investment (FDI) liberalization. Such liberalization has already been implemented in the European Union, and has been started in NAFTA and Mercosur. Three approaches to analysis of MNEs and public policy can be adopted. First is a ‘normative’ approach; second is a ‘behavioural’ approach to public policy; and third is a resource-based approach to the firm. This third approach, adopted in this article, provides insight into the managerial aspects of the firm-level strategy process.
