MNCs Seeking to Exploit National and Regional Differences in Culture and Regulation

Running head: MNCS EXPLOITING NATIONAL AND REGIONAL DIFFERENCES
MNCs Seeking to Exploit National and Regional Differences in Culture and Regulation
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1MNCS EXPLOITING NATIONAL AND REGIONAL DIFFERENCES
Executive Summary
MNCs exploit national along with regional differences in consideration to regulation and culture
within various nations of the world. The report evaluated the ways in which distinct host nations
offer location advantages for distinct types of inward investment and the ways in which this
might be impacted by different regulation forms. States develop necessary strategies in
recognising the opportunities to attain increased advantages from the existing investments. The
states also develop strategies to take into consideration the other types of investments that are
needed by the nations for supporting such investments within the nation. It has been revealed that
the companies that find labour and environmental regulations of host nations extremely strict can
consider relocating to another host nation that has more business friendly laws. Certain tax laws
or regulations imposed by the host nations can impose major effects to the FDI decisions of
multinational companies.

2MNCS EXPLOITING NATIONAL AND REGIONAL DIFFERENCES
Table of Contents
Introduction......................................................................................................................................3
MNCs Seeking to Exploit National and Regional Differences in Regulation and Culture and
States Response...............................................................................................................................3
Host Countries Providing Location Advantages for Inward Investment and Regulations
Impacting its Different Forms.........................................................................................................4
MNCs Obtaining International Uniformity or Different Organisational Policies within Host
Countries..........................................................................................................................................7
States Seeking to Maximize FDI or Other Strategies......................................................................9
Conclusion.....................................................................................................................................11
References......................................................................................................................................13

3MNCS EXPLOITING NATIONAL AND REGIONAL DIFFERENCES
Introduction
The multinational companies are likely to desire to pursue international uniformity within
their organisation and also focus on obtaining distinct organisational policies within distinct host
nations. In consideration to same, it is important to analyse the extent to which states must seek
to increase foreign direct investment along with exploiting certain other strategies in successfully
exploiting the regional and nation based differences focussed on regulation policies and the
counties culture (Arregle et al. 2016). The objective of the report is to analyse the ways in which
the multinational organisations seek to exploit national along with regional differences within the
regulation and culture along with evaluating the ways in which states respond to same. The
report will also evaluate the ways in which distinct host nations offer location advantages for
inward investment and the ways in which this might be impacted by different regulation forms.
MNCs Seeking to Exploit National and Regional Differences in Regulation and Culture
and States Response
MNCs exploit national along with regional differences in consideration to regulation and
culture within various nations of the world. Moreover, there are several state responses to such to
such advantages attained by the MNCs. Bhawe and Zahra (2019) elucidated that the market
position of MNCs is highly distinct in various regions of the world which signifies the need for
different competitive strategies. Moreover, a leadership role of these companies within the
market needs different patterns of actions and decisions in comparison to the role of a small
player within the market. It has also been revealed that there are four aspects that have vital
implications for the governance and regulation of MNCs. This considers existence of several
environmental circumstances such as powerful international competitors within different regions