Abstract

This article analyzes the effects of the recent developments in Iran--namely, the Iranian Revolution and the Iran-Iraq War--on the activities of multinational corporations (MNCs) in the Arab oil-producing countries of Saudi Arabia, Kuwait, and the United Arab Emirates. The level of sales, contracts, and investments by MNCs reflect the perceived spill-over effect of revolution and war and therefore the perceived increase in the risk of losses due to political instability.