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?

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Weltensturm · Answer 1 · 2021-04-15T10:28:56+0000

Answer:

True

Step-by-step 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

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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?

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