This essay has discussed contributions of MNE to the host country. Parallel to the discussion, government roles in sustaining competitiveness associated with the MNE presence was discussed. A conceptual model illustrating the roles of government in balancing these effects was also presented.
It is noted that debates around MNE contributions to the host country might never cease. Regardless of the debates, pressures confronted by governments to compete economically in the global stage are intensifying. At the same time, consolidations within the MNE operation are becoming common in literature studies. These dilemmas can opportune both sides. Specifically on the government side, issues in designing competitiveness policies need to be addressed.
The discussion above underlined some of the policies imposed by developing and new industrialising countries. In the reality, each policy characterises comparative advantages of the host country. Thus, policies discussed above may not represent the ones adopted in developed countries. In addition, policies for attracting MNE investments may have different approaches from those in maximising the MNE presence to stimulate competitiveness. Furthermore, the contextual settings amongst countries may require different policy instruments. Further explorations in customising policy regimes may contribute to substantial understandings in adjusting policy transfers associated with FDIs and competitiveness.
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