ABSTRACT
Governments have often linked the influence and control of foreign investors with the percentage equity ownership they have in a business. For foreign equity ownership above 50 per cent, but below 100 per cent, the foreign investor was seen as exercising control over the firm, yet with the domestic partner being able to influence outcomes. For 100 per cent foreign ownership, the foreign partner was seen as having complete dominance of the firm and its operations. This viewpoint raises two issues for a government: first, the perceived link between percentage foreign equity ownership and influence and control; and second, the rationales which have motivated government concern over whether foreign investors had influence or control in a business. Similarly, this viewpoint raises two issues for transnational corporations: their perceived link between equity ownership and influence and control; and the rationales that have motivated them to desire alternative levels of influence and control through the equity ownership percentages they have achieved.
