Question

In the obsolescing bargain situation, bargaining power of the host country government will be stronger when the MNC has made larger investments in that country.
True or False?

Answer 1

Answer:

True

Explanation:

The obsolescing bargain is a model of interaction between a multinational enterprise and a host country government, which initially reach a bargain that favors the MNE but where, over time as the MNE's fixed assets in the country increase, the bargaining power shifts to the government