国际商务电子教案Chap007.docVIP

International Business: Competing in the Global Marketplace Fifth Edition Chapter 7 PAGE PAGE 109 7The Political Economy of Foreign Direct Investment 7 Learning objectives Present the role governments play in restricting and encouraging flows of FDI. Show how political philosophy affects the attitude of a government towards FDI. Explain the sources of costs and benefits of FDI to host and home countries. Describe the policy instruments available to governments interested in affecting FDI flows. Discuss the negotiation and bargaining processes firms undertake with host governments. This chapter opens with a discussion of how political ideology influences government policy. To a greater or lesser degree, the officials of many governments tend to be pragmatic nationalists who weigh the benefits and costs of FDI and vary their stated policy on a case-by-case basis. The chapter looks directly at how host governments can encourage and restrict the flow of FDI. Home country governments can also affect ability of firms to take resources out of the country for investment elsewhere. In addition to understanding the explicit rules laid out by home and host country governments, firms must evaluate their bargaining position and appropriate negotiating stances when they wish to alter established rules for FDI. The chapter closes with a detailed discussion of the implications of government policy for the business firm. In this closing section, the factors that determine the relative bargaining strengths of a host government and a firm contemplating FDI are examined including a look at how the negotiations between firm and government are often played out and at how firms can use this knowledge to their advantage. The opening case on FDI and the Irish miracle describes the conditions that made it favorable for attracting FDI. WebeSource HYPERLINK /id/4192116/ /id/4192116/ HYPERLINK /articleshow/370334.cms /articleshow/