The role of government policies in the proliferation of multinational business

Abstract

The different components of the governmental policy have a significant influence over the foreign companies` activity. The economic policies include the fiscal policy, monetary policy, commercial policy and sector policy. For transnational society, the most influential governmental actions are those regarding economic restriction like: exchange control, import restrictions, taxes control, price control, the local matters restrictions, foreign investments` restrictions. Knowing the host country’s global political climate (anticipating changes that might appear in time) and its involvement in a larger frame of the world’s political context will offer to the company the possibility of a correct underlying and adaption of its own international strategy according to the concret conditions of the political space where it will operate.

Keywords

• government policies
• multinational business
• political risk
• multinational companies
• political instability
• host country