Highlights

The concept "host country operational measures" (HCOMs) captures the vast array of measures implemented by host countries concerning the operation of foreign affiliates. Once inside their jurisdictions HCOMs usually take the form of either restrictions or performance requirements. They are usually adopted to influence the location and character of FDI and, in particular, to increase its benefits in the light of national objectives. The paper groups HCOMs into three categories and proceeds with discussing them in the context of some of their restrictions at different international levels.