Government corruption and the entry strategies of multinationals Essay

Government corruption and the penetration strategies of multinationals - Essay Exampleus of this paper is to assure a review of the article of Rodriguez et al entitled Government Corruption and the entry strategy of multinationals and it is submitted at the outset that it is firstly necessary to undertake a contextual review of the central issues facing MNEs, government corruption and entry means strategies, which I shall undertake in section 1 as a precursor to the detailed consideration of Rodriguez et als arguments in the article.The limitations of the law as a tool for regulation of MNEs by states was further evidenced by the dictum of Slade LJ in the case of Adams v Cape (1990 Ch 433) per Slade LJ where he asserted that we do not accept as a matter of law that the beg is entitled to lift the corporate veil against a defendant company which is the member of a corporate group merely because corporate structure has been employ so as to ensure that legal will fall on another me mber of the group rather than the defendant company (p.544).Moreover, the UK courts have struggled to verbalise the commercial reality of group companies, indicating a distinct preference for maintaining the sanctity of the separate legal entity principle, which on the one hand arguably facilitates potential for entry mode abuse of the MNE structure or alternatively impedes entry mode depending on the nature of state corruption. Indeed, Rodriguez et al highlight the importance of entry mode strategy to MNE success and therefore it is submitted that the interrelationship between effective governance, corruption and entry level strategy is, which is arguably ignored by Rodriquez et al in their article.Additionally, group company structures often create problems of effective regulation and accountability, yet existing principles of law have arguably been stretched to ignore separate legal nature within a group, which clearly shapes entry mode strategy (Nygh, 2002). This further indic ates a different dimension to the debate regarding corruption and MNE