Abstract
This article describes the historical evolution of transnational corporations–host country relations, particularly as they relate to the foreign direct investment (FDI) climate of the twentieth century. After reviewing major trends in the activities of transnational corporations (TNCs) and the impact of FDI on host countries, we present a model that identifies four phases in the relationship, and discuss how TNCs and nation states continue to alter strategies to accommodate these changes. We then explore opportunities for developing positive sum outcomes in TNC–host country relations in the future, and conclude with recommendations for national and corporate policy and for further research.
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