Host governments sometimes worry that the subsidiaries of foreign MNEs may have greater economic power than indigenous competitors.

Question

Quizplus · Accepted Answer

Host governments may worry that foreign MNE subsidiaries have greater resources, technology, expertise, and access to global markets that could give them a competitive advantage over local companies. This could potentially lead to market domination, unfair competition, and loss of market share for local players, which can have negative consequences on the local economy.

Host Governments Sometimes Worry That the Subsidiaries of Foreign MNEs