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Foreign Direct Investment in Chile: Historical Process, changing political ideologies and the responses of MNEs

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  • Carolina Salcedo
  • Michele E. M Akoorie

Abstract

The objective of this paper is to identify how historical process and changing political ideologies have affected the responses of MNEs to investment in Chile. Using the historical dimension we provide a trajectory of development along which the Chilean economic system influenced by shifts in political ideologies has evolved. For each section we categorized the responses of MNEs during these periods of investment. We then offer some contributions to theory and implications for managers by suggesting that understanding the functioning of a political system assists firm to develop and execute appropriate risk management strategies. Inversión extranjera directa en Chile: proceso histórico, cambios en ideologías políticas y respuestas de empresas multinacionales El objetivo de este artículo es identificar como el proceso histórico y los cambios en ideologías políticas han influenciado en la respuesta de inversión en Chile por parte de las empresas multinacionales. Con base en una dimensión histórica, se presenta una trayectoria de desarrollo a través de la cual el sistema económico chileno, influenciado por cambios en las ideologías políticas, ha evolucionado. En cada sección se categorizan las respuestas de las empresas multinacionales durante los distintos periodos de inversión. A continuación se proponen contribuciones a la teoría e implicancias para los administradores, sugiriendo que el entendimiento del funcionamiento del sistema político de un país asiste a la empresa para desarrollar y ejecutar estrategias de manejo de riesgo apropiadas.

Suggested Citation

  • Carolina Salcedo & Michele E. M Akoorie, 2013. "Foreign Direct Investment in Chile: Historical Process, changing political ideologies and the responses of MNEs," Revista Ad-Minister, Universidad EAFIT, June.
    • Handle: RePEc:col:000475:011685
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    References listed on IDEAS

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    More about this item

    Keywords

    MNEs; foreign direct investment; Chile; political risk; corporate social responsibility; transition economies; Multinacionales; inversión extranjera directa; Chile; riesgo político; responsabilidad social empresarial; economías en transición;
    All these keywords.

    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • P3 - Political Economy and Comparative Economic Systems - - Socialist Institutions and Their Transitions

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