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The role of government policies in the proliferation of multinational business

Author

Listed:
  • Valentina Golea
  • Nicoleta Niculescu
  • Dragos Filip Niculescu

Abstract

The different components of the governmental policy have a significant influence over the foreign companies` activity. The economic policies include the fiscal policy, monetary policy, commercial policy and sector policy. For transnational society, the most influential governmental actions are those regarding economic restriction like: exchange control, import restrictions, taxes control, price control, the local matters restrictions, foreign investments` restrictions. Knowing the host country’s global political climate (anticipating changes that might appear in time) and its involvement in a larger frame of the world’s political context will offer to the company the possibility of a correct underlying and adaption of its own international strategy according to the concret conditions of the political space where it will operate.

Suggested Citation

  • Valentina Golea & Nicoleta Niculescu & Dragos Filip Niculescu, 2010. "The role of government policies in the proliferation of multinational business," Studies and Scientific Researches. Economics Edition, "Vasile Alecsandri" University of Bacau, Faculty of Economic Sciences, issue 15.
    • Handle: RePEc:bac:fsecub:10-15-37
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    More about this item

    Keywords

    government policies; multinational business; political risk; multinational companies; political instability; host country;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • F29 - International Economics - - International Factor Movements and International Business - - - Other
    • F42 - International Economics - - Macroeconomic Aspects of International Trade and Finance - - - International Policy Coordination and Transmission

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