Skip to main content
Log in

Foreign Investment and Economic Development: Conflict and Negotiation

  • Article
  • Published:
Journal of International Business Studies Aims and scope Submit manuscript


This paper is part survey, part essay. The survey consists of a partial review of the literature on the subject of foreign direct investment in developing countries, with particular emphasis on conflict and its resolution through negotiation. After a brief discussion of the objective functions guiding the strategies of both main actors, the paper turns to a review of the substantive and institutional context surrounding the negotiation process between multinational firms and host countries. Next follow some general principles, common to most negotiations, drawn from the experience obtained in other fields, and a discussion of the relevant literature on international business negotiations. Last, the essay integrates the various threads of analysis into a series of normative conclusions which, while not pretending to be imperial, are offered as challenges for further study.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Similar content being viewed by others

Author information

Authors and Affiliations


Additional information

*José de la Torre is Professor of International Business at the European Institute of Business Administration (INSEAD), Fontainebleau, France. During most of the 1980–1981 academic year, he served as Senior Policy Analyst, Office of the Secretary, U.S. Department of Commerce.

Rights and permissions

Reprints and permissions

About this article

Cite this article

De La Torre, J. Foreign Investment and Economic Development: Conflict and Negotiation. J Int Bus Stud 12, 9–32 (1981).

Download citation

  • Published:

  • Issue Date:

  • DOI: