Multinational companies and developing countries: A new relationship

Abstract

In recent years, a rising number of less developed countries (LDCs) have introduced comprehensive regulations governing inflows of foreign direct investments (FDI). The emergence of such regulations has changed the operating relationship between LDCs and multinational companies (MNCs). The objectives of this study are to: (i) examine the emergence of such regulations and identify their common policies; (ii) discuss the important features of the 'new' operating relationship between LDCs and MNCs; and (iii) analyse the potential implications of this relationship both for adopting countries and multinationals.