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Essay Details:
Essay text:
Since MNEs must
conform to the institutional environment prevailing in the host country, managers should undertake FDI where there is minimal
institutional distance between the home and the host country environments. In addition, government of?cials should place
increased emphasis on institutional reform if their objective is to increase inward FDI in their countries. Finally, any assistance
provided by non-governmental organizations, such as the IMF and theWorld Bank, should also emphasize institutional reform.
# 2004 Elsevier Inc. All rights reserved.
1. Introduction
The opening of markets in developing countries in
recent years has brought with it burgeoning foreign
direct investment (FDI) ?ows...
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