An investment agreement between an MNC and a host country reduces the likelihood of opportunistic behavior on the part of one or both parties.

Question

Quizplus · Accepted Answer

An investment agreement outlines the terms and conditions between an MNC and a host country, which helps to clarify expectations and minimize the potential for opportunistic behavior by either party. It also helps to establish a framework for resolving disputes and enforcing contractual obligations.

An Investment Agreement Between an MNC and a Host Country