Other External Pressures
Other External Pressures
The complementary nature of the assets that international firms and countries control would seem, at first, to dictate a mutual interest in finding means to ensure that mutual benefits are developed. While there are pressures to do this, there are other constraints as well, particularly on governmental decision makers, who may have to act in ways not in the best interest of their country. Pressure may come from local companies with which the foreign investor is presently or potentially competing, from political opponents who seize the "external" issue as a means of inciting an unsophisticated population against present political leadership, or from critics who reason that more benefits may accrue to the country through alternative means. Managers also may face pressures from stockholders, workers, consumers, governmental officials, suppliers, and other interest groups outside the country who are concerned with their own interests rather than the achievement of worldwide corporate objectives. These stresses may result in a business-host-country relationship quite different from what might be expected on a purely economic basis. Each party should understand the types and strengths of these external groups, since they affect the extent to which either side may be able to give in on issues under discussion.
The complementary nature of the assets that international firms and countries control would seem, at first, to dictate a mutual interest in finding means to ensure that mutual benefits are developed. While there are pressures to do this, there are other constraints as well, particularly on governmental decision makers, who may have to act in ways not in the best interest of their country. Pressure may come from local companies with which the foreign investor is presently or potentially competing, from political opponents who seize the "external" issue as a means of inciting an unsophisticated population against present political leadership, or from critics who reason that more benefits may accrue to the country through alternative means. Managers also may face pressures from stockholders, workers, consumers, governmental officials, suppliers, and other interest groups outside the country who are concerned with their own interests rather than the achievement of worldwide corporate objectives. These stresses may result in a business-host-country relationship quite different from what might be expected on a purely economic basis. Each party should understand the types and strengths of these external groups, since they affect the extent to which either side may be able to give in on issues under discussion.
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