Description

In their foreign markets, MNCs interact not only with customers and suppliers but also with governments and bureaucrats. The book is an outcome of several years of research on MNCs market activities in developing and industrialized countries. Different from the earlier studies this book addresses how interactions not only with business partners, but also with the vast variety of governmental and legislative organizations, affect local firms and MNCs businesses. Based on the business network theory, the book develops a new model for the exchange relationship between local customers and MNCs and investigates the effect of different political organizations and other business firms. It examines relationship using several dimensions, business, social and political, through multiple cases from a developing country (DC) and industrialized countries. The comparison provides deepened knowledge on strength and longevity of business relationship in these two different business worlds. The outcomes reveal new insights with the claim for general appliance for DCs. The book supports the management of MNCs in their understanding of local firms behavior in such markets and to retain appropriate measure in their globalization efforts. The book also enables governments in DCs to realize consequences of their political actions for both local firms and MNCs and thereby industrialization of the country.