Multinational Enterprises as a New Form of International Industrial Integration

Abstract

Multinational enterprises have been both praised and maligned for their role in changing the international economy over the past 15 years. They are seen as deserving praise or blame, neither or both, according to the viewpoint of the observer. They have been seen as creating new levels of efficiency and growth by some; while others dislike the composition of the products produced, despite the growth. Some see the MEs as having created closer international economic integration, while others do not desire this closeness; still others desire closer integration, but not at the hands of the MEs. Some see these companies as a challenge to the control of the host economy on the part of the government; while others see them as too greatly subject to governmental controls all over the world. Some see the MEs as making significant economic and technical contributions; while others see these contributions redounding to the benefit of the companies rather than the host countries. Still others assess the political and social consequences as undesirable.