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F5. Improved Standards/Practices

Companies are more likely to improve their standards and practices when they invest in more advanced economies, where high standards are often a requirement, and when they are exposed to strong competition that induces them to improve their standards and practices.

A5) IMPROVED STANDARDS/PRACTICES
BD6) Investment destination: More advanced economies
    C) No associated measures
BD8) Transmission channels: Competition effects
    C9) Maximising benefits


Companies are more likely to improve their standards and practices when they invest in more advanced economies, where high standards are often a requirement, and when they are exposed to strong competition that induces them to improve their standards and practices. Efforts to promote this should therefore focus on investments in more advanced economies, although these are not regularly supported by HCMs. Efforts to maximise the benefits from enhanced competition effects could also be made, such as by encouraging the adoption of strong standards and good practices at home.

Key insights

  • The enhancement of home-country standards and practices could be promoted by targeting investments made in more advanced economies and encouraging the adoption of strong standards and good practices at home.