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FDI Looks Like a Regime, But Acts Like The Players Club

FDI Looks Like a Regime, But Acts Like The Players Club

International management of Foreign Direct Investment (FDI) can be characterized as an International regime to the extent that, attempts are being made to establish regularities among MNCs, host countries and home countries. But, at the same time most of its ability to enforce rules and norms can be circumvented by the powerful actors who are the majority rule makers in an FDI regime. For the purposes of this essay, a regime is defined as, "Sets of implicit or explicit principles, norms, rules and decision-making procedures around which actors' expectations converge in a given area of international relations."

Foreign Direct Investment is characterized as, investment by an MNC that extends management rights and controls over affiliate or subsidiary firms in host countries. "MNCs are most commonly c


Home countries through GATT/WTO attempted to regulate FDI in host countries were vaguely defined and disperse. Trade-related investment measures (TRIMs), "prohibit host countries from imposing "local content requirements" on FDI". The "local content requirements" were that a certain percentage of a firms input must be of domestic origin. This benefited the home countries by allowing for FDI in host countries to produce more freely without "local content requirements". From a regimes perspective TRIMs provided a framework for multilateral negotiations on FDI.

onsidered to be firms that control productive assets in more than one country. Parent firms in the home countries of MNCs acquire their foreign assets by investing in affiliate or subsidiary firms in host countries." The MNCs influenced by FDI transactions have engaged in principles such as horizontal

Some common words found in the essay are:
Corporations LDCs, Direct Investment, Investment FDI, Cuba Home, Enterprises Home, host countries, Helms-Burton Act, home countries, Development OECD, Conduct MNCs, countries mncs, FDI Host, fdi host, fdi regime, local content, content requirements, fdi host countries, Club International, local content requirements, firms host countries, affiliate subsidiary, subsidiary firms, international relations, host countries mncs, affiliate subsidiary firms,
Approximate Word count = 582
Approximate Pages = 2 (250 words per page double spaced)


  

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