External link to The rapid growth of MNCs discussion

The rapid growth of MNCs discussion

The rapid growth of MNCs during the last 30 years has pushed these firms into the center of the debate about globalization. Indeed, practically every aspect of globalization has been linked to the activities of MNCs. Ross Perot, for example, claimed during his unsuccessful bid for the presidency in 1992 that the North American Free Trade Agreement (NAFTA) would produce a “giant sucking sound” as […]

External link to Parent Corporations and Affiliates by Region

Parent Corporations and Affiliates by Region

Parent Corporations and Affiliates by Region, 2008 Year Parent Corporations Based in the Economy Foreign Affiliates Based in the Economy Developed Economies 2008 58,783 366,881 European Union 2008 43,492 335,577 United States 2002 2,418 5,664 Other Developed Economies 2008 7,161 9,721 Japan 2006 297 489 Developing Economies 2008 21,425 425,258 Africa 2008 746 6,084 Latin America and the Caribbean 2008 3,533 39,737 Asia 2008 17,124 […]

External link to Obsolescing Bargain Performance

Obsolescing Bargain Performance

Calvo Doctrine Export-Processing Zones Locational Incentives Multilateral Agreement on Investment Obsolescing Bargain Performance Requirement Trade-Related Investment Measures United Nations Resolution on Permanent Sovereignty over Natural Resources SUGGESTIONS FOR FURTHER READING For a detailed discussion of the obsolescing bargain model and an application of this model to Chile, see Theodore H. Moran, Multinational Corporations and the Politics of Dependence: Copper in Chile (Princeton, NJ: Princeton University […]

External link to The politics of MNCs emergence

The politics of MNCs emergence

The politics of MNCs emerge from the competing interests of host countries, home countries of the MNCs, and the MNCs themselves. Each group has dis- tinctive interests regarding FDI. MNCs want to operate freely across the globe, with few government-imposed restrictions on their activities. Host countries want to ensure that the MNCs operating within their borders provide benefits to the local economy that offset the […]

External link to Discussion on The Race to the Bottom

Discussion on The Race to the Bottom

The Race to the Bottom Question How should governments respond to the threat of a “race to the bottom” dynamic that weakens public interest regulation? Overview Some scholars have argued that the growth of MNC activity has given rise to a “race to the bottom” dynamic in government regulation. The world’s governments maintain different regulatory standards. Some enact stringent regulations concerning how firms can treat […]

External link to Developing countries sought international recognition

Developing countries sought international recognition

Developing countries sought international recognition of their right to exert full control over all economic activity within their territories. To this end, those countries secured the passage of the United Nations Resolution on Permanent Sovereignty over Natural Resources in 1962. This resolution recognized the right of host countries to exercise full control over their natural resources and over the foreign firms operating within their borders […]

External link to The capital-importing countries

The capital-importing countries

The capital-importing countries began to challenge these legal principles more intensively following World War I (Lipson 1985). The first challenge came in the Soviet Union, where the 1917 revolution brought to power a Marxist–Leninist government that rejected the idea of private property. The comprehensive nationalization of industry that followed “constituted the most significant attack ever waged on foreign capital” and radically redefined the role of […]

External link to International Regulation of Multinational Corporations

International Regulation of Multinational Corporations

THE INTERNATIONAL REGULATION OF MULTINATIONAL CORPORATIONS There are no comprehensive international rules governing the activities of MNCs. This is not because governments have never tried to create multilateral rules. In fact, governments repeatedly have tried to create such rules during the last 50 years. But to date, these efforts have yielded little. There are par- tial rules set out within the World Trade Organization (WTO), […]

External link to Financial incentives to attract an investment

Financial incentives to attract an investment

The use of financial incentives to attract an investment from a German automaker reached new heights in Alabama’s courtship of Mercedes-Benz in the mid-1990s. For reasons identical to those that motivated BMW, Mercedes-Benz decided to build an assembly plant outside of Germany (Myerson 1996). The firm eventually constructed a $300 million plant in Vance, Alabama, employing about 1,200 workers to produce 65,000 sport utility vehicles […]

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