Advertisement

Alternative Policy Prescriptions and the Multinational Enterprise

  • John H. Dunning
  • Martin Gilman

Abstract

The dynamism of international economic relations has been vividly evidenced by global events of recent years. The changing role of the main actors on the world stage has meant that the assumptions underlying their influence and behaviour, as conceived even in the late 1960s, are no longer appropriate for predicting the course of economic events in the 1980s. Since recognition as well as execution lags are an almost inevitable consequence in these circumstances, politicians and government officials are almost certainly drafting policies suitable for a world that no longer exists. Because of this, their current actions (especially in the field of direct investment) may well have effects very different from those which they intend.

Keywords

Foreign Direct Investment Host Country Direct Investment Transfer Price Multinational Enterprise 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. 1.
    Robert O. Keohane and Joseph S. Nye, ‘World Politics and the Inter- national Economic System’, in C. Fred Bergsten, The Future of the International Economic Order ( Lexington, Mass.: D. C. Heath & Co., 1973 ).Google Scholar
  2. 2.
  3. 3.
    Jack N. Behrman, Towards a New International Economic Order ( Paris: Atlantic Institute, 1974 ).Google Scholar
  4. 4.
    C. Fred Bergsten, ‘Coming Investment Wars?’, Foreign Affairs, October 1974.Google Scholar
  5. 5.
    Howard V. Perlmutter, ‘The Multinational Firm and the Future’, Annals of the American Academy of Political and Social Science, Septem-ber 1972.Google Scholar
  6. 6.
    Jack N. Behrman, Decision Criteria for Foreign Direct Investment in Latin America ( New York: Council of the Americas, 1974 ).Google Scholar
  7. 7.
    Behrman, Towards a New International Economic Order.Google Scholar
  8. 8.
    Seymour J. Rubin, ‘Multinational Enterprise and National Sovereignty: a Sceptic’s Analysis’, Law and Policy in International Business, vol. III, no. 1, 1971.Google Scholar
  9. 9.
    John H. Dunning, ‘The Future of the Multinational Enterprise’, Lloyds Bank Review, July 1974.Google Scholar
  10. 10.
    Bergsten, The Future of the International Economic Order.Google Scholar
  11. 11.
  12. 12.
    Howard V. Perlmutter, ‘Super-Giant Firms in the Future’, Wharton Quarterly, Winter 1968.Google Scholar
  13. 13.
    For a recent analysis of these see United Nations, The Impact of the Multinational Corporation on World Development and International Relations 1974.Google Scholar
  14. 14a.
    Charles Kindleberger in J. H. Dunning (ed.), Economic Analysis and the Multinational Enterprise, 1974.Google Scholar
  15. 14.
    See also Harry G. Johnson, Guidelines for Relationships between Governments and Multinational Corporations ( British-North American Committee, November 1970 ).Google Scholar
  16. 15.
    Long-run profit maximisation as a major goal variable of these firms might be assumed, for even with the separation of ownership and management in these large firms the management, in pursuit of higher salaries, prestige and job security, must expand operations while generating sufficient profits to avoid takeovers and to keep the owners satisfied in a portfolio-return sense (for assuming efficient capital markets, the owners could invest their funds elsewhere).Google Scholar
  17. 16.
    A Code of Conduct for Multinational Companies was adopted by the Council of the OECD on 21 June 1976.Google Scholar
  18. 17.
    Paul M. Goldberg and Charles Kindleberger, ‘Toward a GATT for Investment: a Proposal for Supervision of the International Corporation’, Law and Policy in International Business, vol. II, 1970.Google Scholar
  19. 1.
    Gunnar Hedlund and Lars Otterbeck, Det multinationella foretaget, nationalstaten och fackforeningarna ( Stockholm: P. A. Norstedt & Soners forlag, 1974 ).Google Scholar

Copyright information

© Gerard Curzon 1977

Authors and Affiliations

  • John H. Dunning
    • 1
  • Martin Gilman
    • 2
  1. 1.Reading UniversityEnglandUK
  2. 2.Directorate for Financial and Fiscal, Division of Invisible Transactions and Capital Movements,OECDParisFrance

Personalised recommendations