Multinational Enterprises and Public Policy

The interaction between governments and multinational enterprises is analyzed using a new conceptual framework. This captures the key aspects of Richard Caves′ “normative” and “behavioral” approaches to the literature, but also develops a more contemporary “strategic” approach. Our framework uses insights from the resource-based theory of the firm to analyze managerial aspects of multinational enterprises and public policy neglected by Caves. In particular, we incorporate strategies of national responsiveness.