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Globalisation and New Realities for MNE-Developing Host Country Interaction

Author

Listed:
  • Narula, Rajneesh
  • Dunning, John H.

    (MERIT)

Abstract

Globalisation has resulted in the increased mobility and knowledge intensity of the ownership advantages of MNEs, which they increasingly seek to utilise in conjunction with the created-asset intensive location advantages of countries. We highlight that that the relative opportunity sets (and thus bargaining positions) of both developing country host governments and MNEs varies by the stage of economic development and the motive of FDI. In general, globalisation has shifted the balance in favour of the MNE, and governments increasingly need to provide unique, non-replicable created assets in order to get foreign firms to be ''locked into'' these locations.

Suggested Citation

  • Narula, Rajneesh & Dunning, John H., 1998. "Globalisation and New Realities for MNE-Developing Host Country Interaction," Research Memorandum 011, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    • Handle: RePEc:unm:umamer:1998011
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    File URL: https://unu-merit.nl/publications/rmpdf/1998/rm1998-011.pdf
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    Cited by:

    1. Hogenbirk, Annelies & Narula, Rajneesh, 1999. "Globalisation and the Small Economy: The Case of the Netherlands," Research Memorandum 002, Maastricht University, Maastricht Economic Research Institute on Innovation and Technology (MERIT).
    2. Ele Reiljan, 2001. "Determinants of foreign direct investment inflows in Estonia," University of Tartu - Faculty of Economics and Business Administration, in: Foreign Direct Investments in the Estonian Economy, volume 9, chapter 2, pages 31-90, Faculty of Economics and Business Administration, University of Tartu (Estonia).

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    Keywords

    international economics and trade ;

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