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2. 2 are necessary to properly explore the process of interactions between MNEs and home and host governments. The third component of our new framework analyses the MNE's strategic approach to government policy in terms of strategic perspectives and desired outcomes. 3. The strategic perspective on government policy reflects the extent to which it is viewed as either exogenous or endogenous by the managers of the MNE. If it is endogenous, this means that the MNE will attempt to alter the content and/or process of government policy in its favour.

447-470. Murtha, T. and Lenway, S. (1994) 'Country capabilities and the strategic state: how national political institutions affect multinational corporations' strategies', Strategic Management Journal, 15: pp. 120-141. Nelson, R. (1992) 'Recent writings on competitiveness: boxing the compass', California Management Review, 34 (Summer): pp. 117-125. North, D. (1990) Institutions, Institutional Change and Economic Performance (Cambridge: Cambridge University Press). Nozick, R. (1974) Anarchy, State and Utopia (New York: Basic Books).

And Spencer, B. (1985) 'Export subsidies and international market share rivalry', Journal of International Economics, 18 (February): 85-100. L. (1983) 'The instability of controls on MNE's funds transfers and the instability of governments', Journal of International Business Studies, 14(3): 147-157. L. ) (1985) Political Risks in International Business: New Directions for Research, Management and Public Policy (New York: Praeger Publishers). L. and Young, S. (1998) The Multilateral Investment System and Multinational Enterprises (Oxford: Oxford University Press).

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