Entry strategies for multinational enterprises and host countries

A multinational enterprise (MNE) has a number of investment strategies to enter into a foreign market, such as foreign direct investment, joint venture, exclusive licensing, and others. In contrast, a host government also has the choice to introduce a suitable entry strategy into its local market, with the objective of maximizing its tax revenue or national social welfare. In this paper, we explore the optimal strategies for not only an MNE but also a host country.