The host country’s defensive market policy is based on non-interventionist philosophy. MNCs are expected to accept the host country’s jurisdiction.
MNCs need to consider formal and informal regulations of the employment system, the nature of labor market institutions, and dominant management styles of their host countries as they may shape the short-term and long-term employment strategies of MNCs. For instance, a dominance of low-level job mobility in the host country may encourage MNCs to set long-term employment plans and engage with the host country’s education systems to meet their skill demand. MNC interest in the host country is defined through the domestic subsidiary’s share of the company’s operations. MNCs within global industries like Nestle, IBM and Ford have access to several production and market alternatives.