The political hazards that host country governments pose multinational companies are multifaceted and persistent. This study focuses on the experience of the Canadian subsidiary of British retailer W.H. Smith and Son in order to examine how host country policy can influence a multinational operating in the cultural industries. While bargaining models have previously provided the principal analytical lens for analyzing the interaction between multinationals and host governments, I argue that such frameworks lack the necessary nuance in order to explain fully the interaction between the Canadian government and W.H. Smith. In order to address the intricacy of these relations, it is necessary to integrate insights from new institutional economics with conventional bargaining frameworks.
