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Why Do Multinationals Seek Out Joint Ventures?

In: Foreign Direct Investment

Author

Listed:
  • Magnus Blomström
  • Ari Kokko
  • Mario Zejan

Abstract

Over the years, we have witnessed an increasing desire in a number of developing countries to exercise greater control over the activities of multinational corporations. Many countries have started to frame the environment within which these firms operate and have introduced various performance requirements for their behaviour. Special attention has been given to policies regarding the transfer of technology. A number of measures intended to encourage multinational firms to transfer more technology have been introduced over the years, including requirements for a certain degree of local participation in the ownership of the MNCs’ affiliates. By forcing the multinationals to ‘unbundle the package’ of inputs they bring to the host country, it is believed that a host country can enable local firms to obtain access to these inputs without the traditional direct investment.

Suggested Citation

  • Magnus Blomström & Ari Kokko & Mario Zejan, 2000. "Why Do Multinationals Seek Out Joint Ventures?," Palgrave Macmillan Books, in: Foreign Direct Investment, chapter 3, pages 30-41, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-0-230-59861-4_3
    DOI: 10.1057/9780230598614_3
    as

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