FDI Flows and Regime Type Flashcards
1
Q
Democracy:(1)
A
Stability
- veto players
- democratic leaders more constrained
2
Q
Democracy:(2)
A
Checks+balances
Audience costs
3
Q
Autocracy:
A
- Can offer better entry deal to MNC (bypass trade unions etc)
- Leadership not constrained
- Less Transparency
4
Q
VIEW 1:
MNCs Attracted to Authoritarian Regimes:
A
- Shield from popular demands
- Ability to enact efficiency-enhancing reforms
5
Q
VIEW 2:
Democracy Better Environment for FDI:
A
- Security of property rights
- Political stability
6
Q
Jenson (2003)
“Democratic governments attract __ __ __ __ “
A
higher levels of FDI
