ABSTRACT
Managerial Impediments to Foreign Direct Investment Frank L. B artels and H afiz M irza
Introduction
The perturbation that began as ‘a little local difficulty’ in Thailand, with the failure o f Finance One (a non-bank financial intermediator) on 23 May 19971 turned into the Asian Economic Crisis (AEC)2 - an ‘event horizon’ o f globalization. The contagion became amplified globally and made red raw the nerves o f the world banking system and weakened its financial architecture. In retrospect, the AEC had signals (Krugman, 1994; UNCTAD, 1996).3 There were also managerial signals indicated by multinational enterprises (MNEs) in the region that hitherto have received insufficient attention.
