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Suppose a host country imposes tight restrictions on imports

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Suppose a host country imposes tight restrictions on imports once the MNC' has been established there......what would you say is the consequence for that MNC which is truly attracted to that market? And what would be the direct consequence on DFI for that country?

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This solution discusses the scenario of when a host country imposes tight restrictions on imports.

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In this situation, the host country has tightened restrictions on imports after the MNC has already started importing into the country. We have to therefore consider that the benefits to both countries have already begun because the importing has started. The host and MNC are reaping the ...

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