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Government Intervention in Less Developed Countries: The Experience of Multinational Companies

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  • Thomas A Poynter

    (University of Western Ontario)

Abstract

It is a fact of international business that governments intervene in the operations of foreign direct investors. These government actions create a high level of uncertainty in international planning and are very costly to the foreign investors. It appears, however, that not all firms experience the same degree of intervention. Within almost all nations, the government appears to intervene in some foreign companies more than in others. At one extreme some firms are forced out of the nation, while at the other extreme firms tend to grow and prosper. The purpose of this paper is first, to explain these different experiences of foreign firms, and then to address the question: How can foreign firms reduce the amount of intervention they experience? The conclusions are based on the intervention histories of more than 100 firms.© 1982 JIBS. Journal of International Business Studies (1982) 13, 9–25

Suggested Citation

  • Thomas A Poynter, 1982. "Government Intervention in Less Developed Countries: The Experience of Multinational Companies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 13(1), pages 9-25, March.
    • Handle: RePEc:pal:jintbs:v:13:y:1982:i:1:p:9-25
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    Cited by:

    1. Zhao, Hongxin & Zhu, Gangti, 1998. "Determinants of ownership preference of international joint ventures: new evidence from Chinese manufacturing industries," International Business Review, Elsevier, vol. 7(6), pages 569-589, November.
    2. Yong Li & Jing Li & Peng Zhang & Sunhwan Gwon, 2023. "Stronger together: Country‐of‐origin agglomeration and multinational enterprise location choice in an adverse institutional environment," Strategic Management Journal, Wiley Blackwell, vol. 44(4), pages 1053-1083, April.
    3. Yadong Luo & Huan Zhang & Juan Bu, 2019. "Developed country MNEs investing in developing economies: Progress and prospect," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 50(4), pages 633-667, June.
    4. Bo Bernhard Nielsen & Catherine Welch & Agnieszka Chidlow & Stewart Robert Miller & Roberta Aguzzoli & Emma Gardner & Maria Karafyllia & Diletta Pegoraro, 2020. "Fifty years of methodological trends in JIBS: Why future IB research needs more triangulation," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 51(9), pages 1478-1499, December.
    5. Conway, J. Edward, 2013. "The risk is in the relationship (not the country): Political risk management in the uranium industry in Kazakhstan," Energy Policy, Elsevier, vol. 56(C), pages 201-209.
    6. Röell, Christiaan & Osabutey, Ellis & Rodgers, Peter & Arndt, Felix & Khan, Zaheer & Tarba, Shlomo, 2022. "Managing socio-political risk at the subnational level: Lessons from MNE subsidiaries in Indonesia," Journal of World Business, Elsevier, vol. 57(3).
    7. Lee, Ji-Ren & Chen, Wei-Ru & Kao, Charng, 2003. "Determinants and performance impact of asymmetric governance structures in international joint ventures: an empirical investigation," Journal of Business Research, Elsevier, vol. 56(10), pages 815-828, October.
    8. Gamso, Jonas & Nelson, Roy C., 2019. "Does partnering with the World Bank shield investors from political risks in less developed countries?," Journal of World Business, Elsevier, vol. 54(5), pages 1-1.
    9. Charles E. Stevens & En Xie & Mike W. Peng, 2016. "Toward a legitimacy-based view of political risk: The case of Google and Yahoo in China," Strategic Management Journal, Wiley Blackwell, vol. 37(5), pages 945-963, May.
    10. Vivoda Vlado, 2011. "Bargaining Model for the International Oil Industry," Business and Politics, De Gruyter, vol. 13(4), pages 1-36, December.

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