Multinational Corporations and Host Governments' Relationships: Comparative Study of Conflict and Conflicting Issues

Abstract

The main purpose of this study was to examine analytically the conflicting issues and causes of conflict between multinational corporations (MNCs) and host governments and MNCs and other publics in six countries (Brazil, India, Malaysia, Peru, Singapore, and Thailand). Though the nature and intensity of conflict was conceptually the central focus of our study, it was intended to serve as a springboard to examine broader intra-and interorganizational practices and behavior of the multinationals. Data for this study were collected through interviews with senior executives of 124 MNCs and governmental officials and other knowledgeable persons in these six countries. Analysis of the data indicates that the ownership or national origin of MNC, the expectational differences between MNCs and host governments, and prevailing market conditions were related to the nature and intensity of conflict between the MNCs and the host governments. Surprisingly, the relative size, level of technology employed, level of diversification, period of operation in the host country, and some other internal attributes of the MNCs examined were not found to be significantly related to conflict.

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