Showing papers on "Multinational corporation published in 1983"
339 citations
Posted Content•
01 Jan 1983
TL;DR: In this article, the authors studied the significant growth in foreign direct investment by Third World countries and its impact on the international economic order. And they examined the implications of these developments on the relations between specific home and host countries, and on North-South relations and South South relations in general.
Abstract: In the past decade, a number of Third World countries have emerged from their economic status as sources of raw materials or as sweatshops in which low-wage, low-skilled workers produced goods for the richer nations Now they are themselves manufacturing and consuming high-quality, high-technology products and are establishing foreign subsidiaries, most often in other developing countries This book is the first to study the significant-growth in foreign direct investment by such countries and its impact on the international economic order Third World Multinationals explores the question of why firms based in developing countries have chosen to invest in branches, joint ventures, and wholly-owned subsidiaries overseas rather than simply export goods or enter into licensing arrangements abroad In addition to the cost of transport, tariff barriers, and import restrictions, it identifies a number of less apparent factors, such as the motivations of managers in wanting to go abroad, the meshing of technological levels, ethnic ties, and the desire to protect proprietary processes and competitive advantages The book compares the similarities and differences between these firms and their more established counterparts from the industrialized countries, both large and small It examines the implications of these developments on the relations between specific home and host countries, and on North-South relations and South-South relations in general In the face of scarce and unreliable figures, the author has compiled a considerable amount of validated data and viable estimates from numerous world sources The cases and examples are taken mainly from South America and South and Southeast Asia, those regions that have put forth the largest number of multinational offshoots
336 citations
Posted Content•
TL;DR: In this article, the authors study the significant growth in foreign direct investment by Third World countries and its impact on the international economic order and examine the reasons why firms based in developing countries have chosen to invest in branches, joint ventures, and wholly-owned subsidiaries overseas rather than simply export goods or enter into licensing arrangements.
Abstract: In the past decade, a number of Third World countries have emerged from their economic status as sources of raw materials or as sweatshops in which low-wage, low-skilled workers produced goods for the richer nations. Now they are themselves manufacturing and consuming high-quality, high-technology products and are establishing foreign subsidiaries, most often in other developing countries. This book is the first to study the significant-growth in foreign direct investment by such countries and its impact on the international economic order. Third World Multinationals explores the question of why firms based in developing countries have chosen to invest in branches, joint ventures, and wholly-owned subsidiaries overseas rather than simply export goods or enter into licensing arrangements abroad. In addition to the cost of transport, tariff barriers, and import restrictions, it identifies a number of less apparent factors, such as the motivations of managers in wanting to go abroad, the meshing of technological levels, ethnic ties, and the desire to protect proprietary processes and competitive advantages. The book compares the similarities and differences between these firms and their more established counterparts from the industrialized countries, both large and small. It examines the implications of these developments on the relations between specific home and host countries, and on North-South relations and South-South relations in general. In the face of scarce and unreliable figures, the author has compiled a considerable amount of validated data and viable estimates from numerous world sources. The cases and examples are taken mainly from South America and South and Southeast Asia, those regions that have put forth the largest number of multinational offshoots.
316 citations
TL;DR: In this paper, the authors studied the reasons why firms based in developing countries have chosen to invest in branches, joint ventures, and wholly-owned subsidiaries overseas rather than simply export goods or enter into licensing arrangements.
Abstract: In the past decade, a number of Third World countries have emerged from their economic status as sources of raw materials or as sweatshops in which low-wage, low-skilled workers produced goods for the richer nations. Now they are themselves manufacturing and consuming high-quality, high-technology products and are establishing foreign subsidiaries, most often in other developing countries. This book is the first to study the significant-growth in foreign direct investment by such countries and its impact on the international economic order."Third World Multinationals" explores the question of why firms based in developing countries have chosen to invest in branches, joint ventures, and wholly-owned subsidiaries overseas rather than simply export goods or enter into licensing arrangements abroad. In addition to the cost of transport, tariff barriers, and import restrictions, it identifies a number of less apparent factors, such as the motivations of managers in wanting to go abroad, the meshing of technological levels, ethnic ties, and the desire to protect proprietary processes and competitive advantages.The book compares the similarities and differences between these firms and their more established counterparts from the industrialized countries, both large and small. It examines the implications of these developments on the relations between specific home and host countries, and on North-South relations and South-South relations in general. In the face of scarce and unreliable figures, the author has compiled a considerable amount of validated data and viable estimates from numerous world sources. The cases and examples are taken mainly from South America and South and Southeast Asia, those regions that have put forth the largest number of multinational offshoots.Louis T. Wells, Jr., is Herbert F. Johnson Professor of International Management, Harvard Business School.
147 citations
TL;DR: In this paper, the authors examine the forces that affect growth, location, and distribution in the service sector and examine the specific context of location choices made by offices of multinational enterprises (MNEs).
Abstract: The forces that affect growth, location, and distribution in the service sector will have elements in common with those at work in manufacturing, but equally will exhibit certain unique features. This paper examines such forces in the specific context of location choices made by offices of multinational enterprises (MNEs). Such enterprises emerge in response to particular market imperfections and to exploit particular ‘ownership specific’ advantages. The nature of such ownership specific advantages is discussed with specific reference to MNE office location, and tested using data drawn from a survey of European offices of mainly US-based MNEs. It is shown that a distinction must be drawn between offices that provide a service for final consumption and those that provide a mainly coordinating role. The former types of office are shown to be heavily market oriented and to act in ways consistent with theory. The latter types of office are more complex, but again locate in ways consistent with theory; in part...
81 citations
TL;DR: This paper argued that deriving an appropriate apportionment of strategic responsibility is largely a matter of recognizing the unique strategic imperatives imposed on the multinational firm by the conflicting requirements of integration within a global context, and responsiveness to local environments.
Abstract: An issue that confronts the top management of every multinational company is that of determining where in the organization basic strategy decisions should be made. The firm may concentrate responsibility for a broad range of strategic tasks at headquarters, or cede strategic responsibility to foreign affiliates.
This paper argues that deriving an appropriate apportionment of strategic responsibility is largely a matter of recognizing the unique strategic imperatives imposed on the multinational firm by the conflicting requirements of integration within a global context, and responsiveness to local environments. For the firm whose businesses can benefit from world-wide co-ordination and standardization of manufacturing and product development, there is strong pressure to consolidate strategic responsibility at headquarters. For the firm whose businesses require attention to the idiosyncracies of national markets, the strategic autonomy of subsidiaries may be requisite for success.
A variety of factors renders difficult a clear-cut, one-time identification of the strategic imperative facing a business. For example, even within a single business, certain functions respond to the logic of integration, whereas others require a posture of responsiveness. At times both imperatives exist at full strength within a single functional area. Often, in a multi-business, multinational firm, different businesses are subject to different pressures for integration and responsiveness. It is shown that managing strategic responsibility in situations of such ambiguity forces the firm to look far beyond traditional structural mechanisms in order to enact an appropriate division of strategic responsibility between headquarters and affiliates.
71 citations
TL;DR: The power of the multinational enterprise to influence or control the international transfer of technology over the past century has shifted from that based upon a priviledged possession of a specific intangible asset to that based on the governance of a set of interrelated activities as discussed by the authors.
64 citations
TL;DR: The authors discusses the American taxation of multinational firms and presents an analysis that focuses not only on the levels of foreign and domestic investment but also on the financing of that investment, assuming that the foreign subsidiary can deduct from its taxable income interest on intra-irm debt as well as royalties, head-office charges, and other such payments for intra-firm services.
Abstract: Publisher Summary This chapter discusses the American taxation of multinational firms. It is assumed that a multinational firm starts with an existing stock of foreign and domestic investment and seeks the optimal change in its position over the next year. As the earnings generated by existing investments are an important source of capital for new investment, one cannot ignore the role of the past in shaping the present. The chapter presents an analysis that focuses not only on the levels of foreign and domestic investment but also on the financing of that investment. It is also assumed that the foreign subsidiary can deduct from its taxable income interest on intrafirm debt as well as royalties, head-office charges, and other such payments for intrafirm services.
TL;DR: The authors examined the industrial determinants of foreign ownership shares in the large private corporate manufacturing sector of India and found that foreign investment is concentrated in activities demanding complex technologies, large-scale production and intensive management, which yields high profits.
TL;DR: In this paper, the authors examined the costs and benefits that may arise when host countries aim to indigenise the ownership of foreign subsidiaries, and they showed that there may be an optimal level of indigenisation beyond which the marginal social costs of such policies will exceed the corresponding benefits.
TL;DR: Taylor et al. as discussed by the authors investigated the role of acquisition in the Spatial Distribution of the Foreign Manufacturing Sector in the UK and the impact of Multinational Corporations on the SPO of Developed Nations.
Abstract: List of Tables, figures. Preface. Part 1: The Spatial Development Sequences of Multinational Corporations. 1. Introduction M J Taylor and N J Thrift. 2. Models of Corporate Development and the Multinational Corporation M J Taylor and N J Thrift. 3. Testing Dependency Theory: A Case Study of Brazil's Electrical Industry R S Newfarmer and S Topik. 4. The Inter-regional Distribution of West German Multinationals in the UK H D Watts. 5. The Changing International Division of Labour Within ICI I M Clarke. 6. The Geographical Pattern of the Australian Trading Banks' Overseas Representation J Hirst, M J Taylor and N J Thrift. Part 2: The Geographical Ramifications of Multinational Corporations. 7. Introduction M J Taylor and N J Thrift. 8. The Impact of Multinational Corporations on the Spatial Organisation of Developed Nations: A Review A Blackbourn 9. Multinationals and Industrialisation in a Developing Economy: the Case of Nigeria S I Abumere. 10. Multinational Corporations in Southern Africa: A Spatial Perspective C M Rogerson. 11. The Role of Acquisition in the Spatial Distribution of the Foreign Manufacturing Sector in the UK I J Smith. 12. International Tourism and Multinational Corporations in the Pacific: the Case of Fiji S G Britton. 13. International Capital, International Culture J R Peet. References, Notes. Indices.
TL;DR: The first of these, published in 1954, was Charles Wilson's history of the Anglo-Dutch multinational Unilever, formed by a merger of Lever Brothers and Margarine Unie in 1929 as discussed by the authors.
Abstract: Business history has been a thriving academic industry in Britain for the last three decades. Following some pioneering case studies of Industrial Revolution entrepreneurs by the early giants of the discipline of economic history, the postwar generation has produced a series of high quality company histories. The first of these, published in 1954, was Charles Wilson's history of the Anglo-Dutch multinational Unilever, formed by a merger of Lever Brothers and Margarine Unie in 1929. Wilson's book set the pattern for a high standard of scholarship, resting on complete freedom of access to company archives, and for publication based on scholarly independence rather than the public relations needs of the commissioning organization. If some of its terms of reference now seem dated, and its framework of analysis somewhat unscientific, then that is an indication of the incentive Wilson provided for others to do better, particularly in the use of economic theory and of comparative analysis setting firms in their industrial or international context.
Journal Article•
Book•
01 Jan 1983
TL;DR: The States and their Setting as mentioned in this paper is a collection of reference books about world politics, including the United Nations, the State and the Multinational Corporation, the United States and Conflict, and the Instruments of Conflict.
Abstract: * The States and Their Setting * Great Powers and Lesser States * The World Economy * The State and the Multinational Corporation * The States and Conflict * The Instruments Of Conflict * Secret Intelligence * Force * Economic Statecraft * Propaganda * The States-System * The 'Constitution' of World Politics * The Balance of Power * Diplomacy * Peacekeeping * The UN Welfare Network * Conclusion * Notes of Reference Books * Index
TL;DR: In this paper, the authors apply a larger theoretical framework to particular phenomena in the context of capital mobility in the US economy, by enlisting concepts of the balance of class forces and the strategic situation in which classes and their segments are embedded.
Abstract: The capitalist system is to be understood as global rather than national. Rapid mobility has diffused manufacturing around the globe, increasingly to nations formerly considered peripheral sources of primary extraction. The large global enterprise (the multinational corporation or MNC) is the main, though not the only, institutional form and channel of this mobility. At the local level of metropolis and region the engine driving development and prosperity is the investment localized there. Economic decline results from capital outflow which is the aggregate result of numerous location decisions by firms and investors. Chief among the considerations to stay, leave, or enter a locality are considerations of wages, the discipline of the labor force, and public policy perceived to be favorable to capital. In the course of the last decade we have learned that the consequences of a net outward flow of capital include many personal and community manifestations which have come to be called social problems. Much of the analysis of the above familiar trends is cast in tones of concern and indignation. It remains for social scientists to bring to bear on such questions conceptual tools based on a theoritical perspective. The proximate goal of such an enterprise is the portrayal of fundamental processes in a consistent and objective manner. That goal can be advanced by enlisting concepts of the balance of class forces and the strategic situation in which classes and their segments are embedded. Such work lies in the intermediate ground between an abstract discussion of the crisis tendencies inherent in capitalism and the empirical details of particular social events. This intermediate level is an appropriate ground upon which to interpret particular kinds of state or public policy. The task of such analysis is to apply a larger theoretical framework to particular phenomena. At the intermediate level policies constitute both products of larger processes, i.e., they register changes in the relative power of classes as evidenced in state activity, and also constitute defacto propositions about the dynamics of the political economy. The theoretical framework referred to in this interpretation of public policies responding to capital mobility is that of global capitalism. By global capitalism one refers to a form of capitalism now becoming dominant, characterized by the operations of the multinational corporation-or the global firm [20; 45; 46; 47; 49; 50]. This form of capitalist organiza-
TL;DR: In this paper, the authors apply theories developed for the multinational enterprise in the manufacturing sector, to original data and observations on the international hotel industry to generate potentially useful hypotheses for consideration by host governments.
Book•
01 Jan 1983
TL;DR: This article provided a brief historical note on the rise of the English joint-stock company and then proceeds to examine the general state of accounting affairs; the functional organization of the accounting activity; and the order and method of accounting in the East India Company.
Abstract: Although the account-books of the East India Company for the period 1600–1657 are lost, an almost complete series of minutes and other documents make the exploration of accounting in this great mercantile company possible. The present study provides a brief historical note on the rise of the English joint-stock company and then proceeds to examine (1) the general state of accounting affairs; (2) the functional organization of the accounting activity; and (3) the order and method of accounting in the East India Company.
TL;DR: In this article, the authors present evidence that multinationals depress the economies of host developing countries and discuss the problems these trans-national giants create for labour movements, showing that preference for advanced countries and only certain nations of the Third World is shown at work in private Euromarket financial operations.
Abstract: The essays in The New International Economy deal with the multinational economy and the changes coming over it. The authors present evidence that multinationals depress the economies of host developing countries and discuss the problems these trans-national giants create for labour movements. Case studies of Brazil and Quebec show local effects of the new international order. Preference for advanced countries and only certain nations of the Third World is shown at work in private Euromarket financial operations.
TL;DR: The authors analyzes factors determining the profitabilty of 750 of Canada's largest manufacturing firms, both domestic-and foreign-controlled, over the period 1968-1972, and finds that US-controlled firms were more profitable than either Canadian- or other foreign controlled firms, when various firm- and industry-specific factors are held constant.
Abstract: This study analyzes factors determining the profitabilty of 750 of Canada's largest manufacturing firms, both domestic- and foreign-controlled, over the period 1968-1972. It is found that US-controlled firms were more profitable than either Canadian- or other foreign-controlled firms, when various firm- and industry-specific factors are held constant. In addition, the higher was the degree of non-resident (presumably American) ownership, the more profitable were US-controlled firms. The reverse was true of other foreign firms. These results for US firms are consistent with the Hymer–Caves and internalization approaches to the multinational corporation. However, the results for other firms are not, thus suggesting that a ‘general’ theory of the multinational corporation has yet to be forwarded.