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Foreign Investment and Economic Development: Conflict and Negotiation


  • José de La Torre



This paper is part survey, part essay. The survey consists of a partial review of the literature on the subject of foreign direct investment in developing countries, with particular emphasis on conflict and its resolution through negotiation. After a brief discussion of the objective functions guiding the strategies of both main actors, the paper turns to a review of the substantive and institutional context surrounding the negotiation process between multinational firms and host countries. Next follow some general principles, common to most negotiations, drawn from the experience obtained in other fields, and a discussion of the relevant literature on international business negotiations. Last, the essay integrates the various threads of analysis into a series of normative conclusions which, while not pretending to be imperial, are offered as challenges for further study.© 1981 JIBS. Journal of International Business Studies (1981) 12, 9–32

Suggested Citation

  • José de La Torre, 1981. "Foreign Investment and Economic Development: Conflict and Negotiation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 12(2), pages 9-32, June.
  • Handle: RePEc:pal:jintbs:v:12:y:1981:i:2:p:9-32

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    Cited by:

    1. O'Donnell, Sharon & Blumentritt, Timothy, 1999. "The contribution of foreign subsidiaries to host country national competitiveness," Journal of International Management, Elsevier, vol. 5(3), pages 187-206.
    2. Appiah-Adu, Kwaku, 1999. "The impact of economic reform on business performance: A study of foreign and domestic firms in Ghana," International Business Review, Elsevier, vol. 8(4), pages 463-486, August.

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