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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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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?

User Felix Gerber
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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

User Weltensturm
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