if a foreign trade policy of a country states that multinational companies can enter its market only by merging with a local business partner, this would represent which environmental force?

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25-10-2022
Business

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if a foreign trade policy of a country states that multinational companies can enter its market only by merging with a local business partner, this would represent which environmental force?

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ArpitaK ArpitaK · Answer 1 · 2022-10-29T09:09:14+02:00

If a foreign trade policy of a country states that multinational companies can enter its market only by merging with a local business partner, this would represent political environmental force.

New players (businesses needing foreign intermediaries for their production processes) are joining traditional free trade enthusiasts (exporters wanting market access in foreign countries) in their lobbying efforts for trade liberalization. Due to their significant engagement in global commerce and wealth of resources that may be used to influence political legislators, multinational companies (MNCs) play a significant role in this new alliance.

A framework for growing exports of products and services, creating jobs, and raising value addition inside the nation is provided by the foreign trade policy. It aims to promote both the manufacturing and services sectors, with a focus on enhancing business accessibility. As a result, multinational companies actively shape the intricate interdependencies that define the current global political economy.

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