ABSTRACT
As we have seen, the previously rising trend in the nationalization of MNE affiliates was interrupted in the mid-1970s. Practically all countries stopped pursuing the policy over a period of about 5 years, and there have been very few acts in the 1980s. This seems to contradict the mainstream theory of the obsolescing bargain (Vernon 1971), according to which host countries’ capacity to capture rents as well as run subsidiaries on their own increases over time.
