Bargaining Power Models
- Multinational Enterprises tend to adopt political strategy in negotiating favorable market entry or expansion conditions in host countries, especially in distractive industries ( such as oil, gas ang mining industries)
Through reviewing different bargaining power models such as the one tier, the two tier, and the modified one tier bargaining power models; discuss
- Factors that may change the bargaining relationships between foreign Multinational Enterprises (MNEs) and host country governments.
- Implication of changing bargaining power for political risks faced by foreign MNEs.
- Despite of the risks of political strategies, there are benefits of them.
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