The role of government policies in the proliferation of multinational business

Valentina Golea, Nicoleta Niculescu, Dragos Niculescu


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.


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

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ISSN: 2344-1321 (online)