Edited by Andreas Nölke and Christian May
The relations between multinational corporations (MNCs) and host countries are not as simple as is often suggested. Instead of dictating the terms of their engagement in host countries, MNCs find themselves in bargaining situations with host countries. This chapter demonstrates the different ways in which such bargaining takes place and how this affects the strategies and outcomes of both host states and MNCs. For this purpose, the authors critically review the relevant approaches on bargaining models and argue that the relationship between MNCs and host countries can only insufficiently be analysed with the help of such models, but it is necessary to take into account the interdependent macro- and micro-level contexts and complementarities arising from structural and institutional properties.
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