Obsolescing Bargain Model

Definitions

Economics

  • A model of interaction between a multinational enterprise and a host country government, which initially reach a bargain that favors the MNE but where, over time as the MNE's fixed assets in the country increase, the bargaining power shifts to the government. Due to Vernon (1971).
  • acronymOBM
  • Obsolescing Bargain Model
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