“…In manufacturing and high‐tech industries, where local operations require lower investments or benefit from ongoing knowledge transfer from home operations, MNCs tend to maintain their bargaining power over time (Bennett and Sharpe, 1979; Grosse, 1996; Kobrin, 1987). Conversely, in industries characterized by asset specificity and high fixed costs – such as those based on exploitation of natural resources (Click and Weiner, 2010; Durnev et al, 2009), large infrastructure projects (Ramamurti and Doh, 2004) or the provision of essential services such as telecommunications, water, electricity and gas (García‐Canal and Guillén, 2008) – the MNC’s bargaining power tends to erode more rapidly, as it is more costly for it to leave the country (Kobrin, 1982; Maurer, 2013).…”