Direct foreign investment by transnational corporations is of increasing importance for developing nations and has major implications for legislators, policy-makers and business leaders. This text shows how transnational corporations build contacts with various levels of government to legitimize their operations in a country and obtain favourable decisions. Using data and figures from detailed interviews with transnational corporations executives, the authors examine strategies transnational corporations pursue towards governments, how the two interact, on what issues and at which levels, and how these contacts are developed and maintained. Through the exchange of information and favours, transnational corporations - often using local agents - are shown to be able to develop stable and trustworthy relationships with governments. The strong theoretical structure used in this study, drawing on both the network approach and institutionalist theory, emphasizes the co-operative nature of this relationship.
Researchers and students of international business, international marketing and international relations, as well as government officials and policy-makers should find this volume useful, with its emphasis on the co-operative nature of state-corporate relations.