Mgt 439
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An MNE has more leverage over a government's policies before investing in a country than after. The level of influence depends on how important the MNE is to the country's economy and whether the investment will export goods earning foreign currency or sell locally and compete with domestic firms.
Mgt 439
- 3. an MNE can put more pressure on a government before it invest in a country than after wards. The amount of pressure that can be applied depend on how important the MNE is to the country. Also its much depends on whether the MNE is planning to use the FDI to produce goods that will be re-exported ,thus earning foreign currency for the host country or to sell goods and services into the local market thereby displacing national firms
- 4. Advocacy: speaking out on behalf of certain constituency in order to influence policy makers to adopt a friendly stance.