The role of government policies in the proliferation of multinational business

• Main Authors: Valentina Golea, Nicoleta Niculescu, Dragos Niculescu
• Format: Article
• Language: English
• Published: University of Bacău 2010-12-01
• Series: Studies and Scientific Researches: Economics Edition
• Subjects: government policies; multinational business; political risk; multinational companies; political instability; host country
• Online Access: http://sceco.ub.ro/index.php/SCECO/article/view/120

The different components of the governmental policy have a significant influence over the foreign companies` activity. The economic policies include the fiscal policy, monetary policy, commercial policy and sector policy. For transnational society, the most influential governmental actions are those regarding economic restriction like: exchange control, import restrictions, taxes control, price control, the local matters restrictions, foreign investments` restrictions. Knowing the host country’s global political climate (anticipating changes that might appear in time) and its involvement in a larger frame of the world’s political context will offer to the company the possibility of a correct underlying and adaption of its own international strategy according to the concret conditions of the political space where it will operate.