The Inability of the Philippines to use its Bargaining Power Effectively to Attract Foreign Direct Investment (FDI) for its Economic and Social Development

Abstract

In recent times, developing countries have accelerated their policies from protectionism to more open economies to achieve higher rates of economic growth. The implementation of economic reform measures together with offering tax breaks and additional incentives aimed at attracting foreign direct investment (FDI) have gained momentum as countries compete with each other to attract further investment from multinational corporations (MNCs). It has been observed that many developing host nations lack negotiating skills when dealing with MNCs for effective implementation of relevant investment projects. The process of bargaining and negotiations between individuals and groups from MNCs and host governments to achieve the best possible deal is an important feature of the relationship and interaction between these parties.