Modernizing the Conception of the Multinational Corporation in Developing Country Regulatory Policy: An analysis of firm structure, FDI network development, and their relationship to regulatory policy

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Political Science | Social and Behavioral Sciences


This thesis addresses the question of why developing have become increasingly unable to successfully regulate the actions of multinational corporations (MNCs). I argue that the reason this failure occurs is connected to the outdated definitions of MNCs used by nations which defines multinational corporations as primarily production based entities thus ignoring the increasing role the formation of networks facilitating the increased flow of capital across national borders play within these corporations. This paper is divided into three sections. The first will involve a historical overview of MNC organizational structure and developing world policy from the 1960s to the 1970s. The second section utilizes an analysis based on bargaining theory to explain the connection between these two historical narratives. The final section included two case studies on Asia and Latin America aimed at testing the points how the type of regulations instituted by developing countries influence the quality of FDI entering their economy.