Governance risk due to goal conflict between an MNE and its host government is the main political firm-specific risk.
Governance encompasses the system via which an business enterprise is managed and operates, and the mechanisms by which it, and its people, are held to account.
Firm-specific are described as a unique functionality proprietary to the agency constructed upon product or technique generation, marketing, or distribution abilities. As such, internalization principle by and large focuses on the firm-unique belongings, consisting of technological, production and management abilities, patents, manufacturers, and goodwill, which can be transferable within a company throughout borders.
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