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Showing papers on "Multinational corporation published in 1971"


Journal ArticleDOI
TL;DR: In this article, the authors argue that foreign direct investment occurs mainly in industries characterized by certain market structures in both the "lending" or home and "borrowing" (or host) countries.
Abstract: As trade follows the flag, so does applied economics follow the newspapers. Urgent issues of public policy have in the past decade or so called forth a great deal of new factual evidence on the international corporation, as the chief conduit for foreign direct investment.2 It has been studied as a channel for the international transfer of technology, as a business organization serving more than one national sovereign master, and as a force influencing the international financial flows recorded in a country's balance of payments. Yet relatively little emphasis has fallen on what might seem the two principal economic features of direct investment by the international corporation: (1) it ordinarily effects a net transfer of real capital from one country to another; and (2) it represents entry into a national industry by a firm established in a foreign market. This neglect is unfortunate, because recognition of these features lets one bring to bear on the causes and consequences of direct investment two important bodies of economic analysis-the pure theory of international trade and the conceptual structure and evidence of market behaviour reposing in the field of industrial organization. Briefly, the argument of this paper is that foreign direct investment occurs mainly in industries characterized by certain market structures in both the "lending" (or home) and "borrowing" (or host) countries. In the parlance of industrial organization, oligopoly with product differentiation normally prevails where corporations make "horizontal" investments to.produce abroad the same lines of goods as they produce in the home market. Oligopoly, not necessarily differentiated, in the home market is typical in industries which undertake "vertical" direct investments to produce abroad a raw material or other input to their production process at home. Direct investment tends to involve market conduct that extends the recognition of mutual market dependence-the essence of oligopoly-beyond national boundaries. Likewise it tends broadly to equalize the rate of return on (equity) capital throughout a

2,261 citations




Journal ArticleDOI
TL;DR: One of these behavioral issues which is particularly vital to the multinational firm is the performance of persons of one nationality who are assigned to positions in another cultural and national environment as mentioned in this paper, which is a set of factors very important to the success of multinational firms has received relatively little attention from researchers.
Abstract: Myriad factors have important effects on the performance of the multinational corporation. In addition to the normal business issues faced by its domestic counterpart, the multinational firm faces many added opportunities and problems simply because it operates in more than one country. Many of these complicating factors which are unique to multinational firms have been examined and researched in great detail. However, one set of factors which is very important to the success of multinational firms has received relatively little attention from researchers: those factors relating to the unique human and behavioral problems encountered by a firm operating in several cultural and national environments. One of these behavioral issues which is particularly vital to the multinational firm is the performance of persons of one nationality who are assigned to positions in another cultural environment.© 1971 JIBS. Journal of International Business Studies (1971) 2, 40–46

78 citations



Journal ArticleDOI
TL;DR: In this article, an analysis of similarities and differences in the organization structure of multinational corporations based in the United States and four European countries is presented. But the analysis is limited to four countries.
Abstract: This paper is concerned with an analysis of similarities and differences in the organization structure of multinational corporations based in the United States and four European countries. The empi...

41 citations


Journal ArticleDOI
TL;DR: The international monetary crises of the 1960s have demonstrated the emergence of financial markets that seem to operate beyond the jurisdiction of even the most advanced industrialized states of the West and outside their individual or collective control.
Abstract: Changes in the structure of the global economy have resulted in a withering of governmental control of certain activities presumed to be de jure within the domain of governments. The international monetary crises of the 1960s have demonstrated the emergence of financial markets that seem to operate beyond the jurisdiction of even the most advanced industrialized states of the West and outside their individual or collective control. The flourishing of multinational corporations has affected the national science and economic growth policies of highly developed and less developed states alike by restricting the freedom of those governments to establish social priorities. Tariff reductions carefully and arduously negotiated on a multilateral basis through the General Agreement on Tariffs and Trade (GATT), through bilateral arrangements, or through emergent regional economic organizations have similarly increased the number of relatively nonmanipulable and unknown factors which must be accounted for in planning a wide spectrum of domestic and foreign economic policies—from regional development policy or anti-inflationary efforts on the domestic side to the international exchange rate of a state's currency.

41 citations


Book
01 Jan 1971

40 citations




Journal ArticleDOI
TL;DR: Hawkins as mentioned in this paper concludes a discussion of this with the statement, “Those responsible for foreign operations need to create management control systems tailored to the peculiar objectives, organization, and environment of their international operations, rather than simply exporting their domestic control systems.”
Abstract: As a company expands its operations from a predominately domestic base to a multinational base, it might be expected that its formal systems of reporting and control will undergo some fundamental changes. For example, Hawkins concludes a discussion of this with the statement, “Those responsible for foreign operations need to create management control systems tailored to the peculiar objectives, organization, and environment of their international operations, rather than simply exporting their domestic control systems.”11David F. Hawkins, “Controlling Foreign Operations,” Financial Executive, Vol. 33, No. 2 (February 1965), p. 25. But does this occur in practice? And, more important, should it occur?© 1971 JIBS. Journal of International Business Studies (1971) 2, 11–28

Journal ArticleDOI
TL;DR: In this paper, the authors discuss the potential of a multinational enterprise to circumvent a tight monetary policy in one country by having an affiliate borrow in another country and transfer the funds across national borders.
Abstract: The recent growth in the size and number of private business enterprises that operate in many countries has generated a great deal of speculation as to whether a form of international organization has been created which is able to frustrate the policies of the traditional nation-state. The enterprise with subsidiaries scattered around the globe clearly has the potential to evade the influence of many governmental policies. The firm can circumvent a tight monetary policy in one country by having an affiliate borrow in another country and transfer the funds across national borders. If direct transfers of capital from abroad are restricted, transfer prices, royalty payments, or open accounts between affiliates can be adjusted to bring in the needed financial resources. If taxes are high in one jurisdiction, profits that would be subject to tax can be shifted to another tax jurisdiction through manipulation of affiliate transactions. National labor unions and comparatively harsh labor legislation can be frustrated by moving production to facilities in another country when strikes or higher costs threaten a particular market. A governmental program aimed at increasing technical and managerial training to provide a larger domestic supply of skilled personnel may only generate technicians or managers for the multinational enterprise to shift out of the country, back to its head office or to other countries. Technology developed in one country—often through governmental support and often related to defense needs of governments—can be leaked quickly to other countries through the communication network of the multinational enterprise.

Journal ArticleDOI
TL;DR: In this article, the authors consider arguments which are critical of the role of the multinational corporation and assess its consequences, but the need for an assessment cannot be ignored, since it is easier to map the growth of multinational corporations than to assess their consequences.
Abstract: Whether or not less developed countries can better realize their economic aspirations by strengthening their ties with developed countries will remain in dispute as long as there are rich and poor countries. Dispute will be particularly sharp while the main instruments of such interconnection are identifiable institutions like the multinational corporation. It is easier to map the growth of the multinational corporation than to assess its consequences, but the need for an assessment cannot be ignored. As this essay's subtitle suggests, my main concern is consideration of arguments which are critical of the role of the multinational corporation.

Journal ArticleDOI
TL;DR: In this paper, the location of authority for marketing decisions within a particular multinational firm was investigated and the extent to which attention seldom is paid to the location where authority was involved in marketing decisions.
Abstract: Attention seldom is paid to the location of authority for marketing decisions within a particular multinational firm when problems of marketing on a multinational scale are considered The extent o

Journal ArticleDOI
TL;DR: The U.S. multinational enterprise as an eco nomic institution seems capable of adding to the world's aggre gate productivity and economic growth, but it has generated tensions in foreign countries.
Abstract: THE extraordinary spread of U.S. enterprises into foreign countries in the last two decades has produced its inevitable aftermath. Though the multinational enterprise as an eco nomic institution seems capable of adding to the world's aggre gate productivity and economic growth, it has generated tensions in foreign countries. As a rule, the tensions are a manifestation of powerful psychic and social needs on the part of ?lite groups in host countries, including the desire for control and status and the desire to avoid a sense of dependence on outsiders. There are several unresolved conflicts. Sovereign states have legitimate goals toward which they try to direct the resources under their command. Any unit of a multinational enterprise, when operating in the territory of a sovereign state, responds not only to those goals but also to a flow of commands from outside, including the commands of the parent and the commands of other sovereigns. As long as the potential clash of interests re mains unsolved, the constructive economic role of the enterprise will be accompanied by destructive political tensions. II


Book
01 Jan 1971
TL;DR: A Government which, through might of arms, was the most powerfull in Asia; a Government, the revenue of which was greater than that of Britain; a government which ruled over more people than the present government of the United States; a goverment owned by bussinesment, the shares in which were daily bought and sold as mentioned in this paper.
Abstract: A Government which, through might of arms, was the most powerfull in Asia; a Government, the revenue of which was greater than that of Britain; a government which ruled over more people than the present government of the United States; a goverment owned by bussinesment, the shares in which were daily bought and sold.

Journal ArticleDOI
TL;DR: In this paper, the authors uncovers the features unique to foreign marketing operations and describes processes for dealing with differences, and discusses the differences between international management and domestic management in production and marketing.
Abstract: The growing involvement of American business in international production and marketing has raised the question: Does international management really differ from management of domestic operations? This article uncovers the features which are unique to foreign marketing operations and describes processes for dealing with differences.

Journal ArticleDOI
TL;DR: The emergence of the multinational corporation in world politics poses important and fundamental challenges to both the current structure and process of the world political system and to the study of the political system itself as discussed by the authors.
Abstract: The emergence of the multinational corporation in world politics poses important and fundamental challenges to both the current structure and process of the world political system and to the study of the world political system itself. While multinational corporations predate many of the world political actors recognized by scholars today (i.e., the Asian and African nation-states, and regional and global political organizations) they have been slow to gain a measure of recognition as world political actors commensurate with the scope and magnitude of their impact on world politics. The failure of most scholars to recognize the political dimensions of the multinational corporation may be attributed to several factors. In the first place, it has long been the bias of traditional political science to study only governments and their institutions, and to assume that all significant political activity occurs therein. This scholarly orientation has traditionally prevailed within the discipline, and especially throughout the height of the nation-state system when most political activity was in fact organized around and within government and its cognate institutions.

Journal ArticleDOI
TL;DR: In this article, the authors argue that the extraordinary changes in international communication and international transportation during the past 40 or 50 years have profoundly altered the horizons of business decisionmakers, giving enormous stimulus to the creation of multinational business enterprises.
Abstract: This essay elaborates several basic propositions. First, the extraordinary changes in international communication and international transportation during the past 40 or 50 years have profoundly altered the horizons of business decisionmakers, giving enormous stimulus to the creation of multinational business enterprises. Second, in narrow economic terms the multinationalization of business activity has added to the efficiency of the world economy. Third, the advances in transportation and communication, reinforced by the existence of multinational business enterprises, have stimulated interaction between national economies and reduced the effectiveness of national controls, particularly in advanced countries. Finally, despite the increasing porosity of national boundaries these countries have been expanding and refining their national economic and social goals in ways that require more controls at national borders or more joint controls between cooperating states.


Journal ArticleDOI
TL;DR: In this paper, the authors used a statistical series extending from 1485 to 1960 to identify the coming decades as a period in which conflict may be expected to culminate in major episodes of internal civil strife.

Journal ArticleDOI
TL;DR: For example, this paper studied the role of multinational enterprises (corporations and joint ventures) in American national politics, comparative politics, and world politics, yet their study has been neglected by all but a few students of politics.
Abstract: Multinational enterprises (corporations and joint ventures) are important actors in American national politics, comparative politics, and world politics, yet their study has been neglected by all but a few students of politics. This neglect is accounted for by ( 1 ) a preference for studying governmental and intergovernmental rather than nongovernmental entities; (2) the difficulty of acquiring data on these enterprises; and (3) the fact that these interprises have achieved prominence in national and international life only recently. The nation-state is assumed to be the prime actor in world politics, although it was not before 1648 and may not be sometime in the future. The







Journal ArticleDOI
TL;DR: In this article, the authors consider whether the multinational corporation constituted a challenge to the industrial relations systems as they have developed in Europe over the last quarter of a century and what response such a challenge found in the trade-union movement.
Abstract: The author considers whether the multinational corporation constituted a challenge to the industrial relations systems as they have developed in Europe over the last quarter of a century and what response such a challenge found in the trade-union movement.