The Myth of the Global Corporation

by Paul Doremus, William W. Keller, Louis W. Pauly, Simon Reich

Overview

Critics and defenders of multinational corporations often agree on at least one thing: that the activities of multinationals are creating an overwhelmingly powerful global market that is quickly rendering national borders obsolete. The authors of this book, however, argue that such expectations commonly rest on a myth. They examine key activities of multinational corporations in the United States, Japan, and Europe and explore the relationship between corporate behavior and national institutions and cultures. They demonstrate that the world's leading multinationals continue to be shaped decisively by the policies and values of their home countries and that their core operations are not converging to create a seamless global market.


With a wealth of fresh evidence, the authors show that Japanese and German multinationals, in particular, remain only weakly committed to laissez-faire policy orientations and continue to exhibit strong allegiance to national goals in such areas as investment and employment. They also bring to light the consequences of enduring differences in government policies on, for example, industrial cartels, capital markets, and research and development.


The authors agree that the world economy is becoming more complex and integrated as overt barriers to trade and investment fall away. But they conclude that the extent of this integration is decisively limited by structural divergence at the level of the firm. The book will be essential reading for those seeking to understand the growing interdependence of still-distinctive industrial societies and the wellsprings of the true global economy.

Product Details

ISBN-13:	9780691010076
Publisher:	Princeton University Press
Publication date:	05/30/1999
Edition description:	Revised ed.
Pages:	208
Product dimensions:	7.75(w) x 10.00(h) x (d)

About the Author

Paul N. Doremus is Senior Analyst (Technology Administration) in the U.S. Department of Commerce. William W. Keller is Executive Director, Center for International Studies, Massachusetts Institute of Technology. He is the author of The Liberals and J. Edgar Hoover: Rise and Fall of a Domestic Intelligence State (Princeton). Louis W. Pauly is Professor of Political Science and Director, Center for International Studies, University of Toronto. He is the author of Who Elected the Bankers? Surveillance and Control in the World Economy. Simon Reich is Professor of Public and International Affairs, University of Pittsburgh. He is coauthor of The German Predicament: Memory and Power in the New Europe.

Table of Contents

        LIST OF TABLES AND FIGURES                 ixPREFACE                                            xi   CHAPTER 1  National Firms in Global Commerce     3   CHAPTER 2  States and Firms: Conventional        11   Images, Complex Realities   CHAPTER 3  National Foundations of               22   Multinational Corporate Activity   CHAPTER 4  National Foundations of               59   Multinational Corporate Activity   CHAPTER 5  The Strategic Behavior of MNCs        84   CHAPTER 6 Corporate Diversity and Public         138   Policy NOTES                                              151 SELECTED BIBLIOGRAPHY                              183 INDEX                                              189 

What People are Saying About This

Krasner

This book is a major contribution to our empirical and conceptual understanding of the contemporary world.
— Stephen D. Krasner, Stanford University

From the Publisher

"In our fast-changing world, the national interest can only realistically be conceived and defended if we understand that important differences remain in the way corporations based in the United States, Europe, and Asia operate. This excellent and meticulously researched book explodes many of the myths currently surrounding the world 'globalization.' It is essential reading for business leaders and policymakers alike."—Senator John D. Rockefeller IV

"This is an important contribution to scholarship on the multinational firm and the subject of international political economy. It will go far to correct the prevalent idea in popular and academic thinking that the multinational corporation has become an autonomous actor in international economic affairs."—Robert Gilpin, Princeton University

"This book is a major contribution to our empirical and conceptual understanding of the contemporary world."—Stephen D. Krasner, Stanford University

John D. Rockefeller IV

In our fast-changing world, the national interest can only realistically be conceived and defended if we understand that important differences remain in the way corporations based in the United States, Europe, and Asia operate. This excellent and meticulously researched book explodes many of the myths currently surrounding the world 'globalization.' It is essential reading for business leaders and policymakers alike.

Robert Gilpin

This is an important contribution to scholarship on the multinational firm and the subject of international political economy. It will go far to correct the prevalent idea in popular and academic thinking that the multinational corporation has become an autonomous actor in international economic affairs.
— Robert Gilpin, Princeton University

Editorial Reviews

"This work is concisely yet lucidly presented. . . . Recommended for all those interested in the global economy."

Choice

"When it comes to corporate behavior, the authors show convincingly that nationality is destiny. This is a timely and brave book."—-Bruce Kogut, Harvard Business Review

From the Publisher

When it comes to corporate behavior, the authors show convincingly that nationality is destiny. This is a timely and brave book.

Harvard Business Review - Bruce Kogut

When it comes to corporate behavior, the authors show convincingly that nationality is destiny. This is a timely and brave book.
— Bruce Kogut

Harvard Business Review

Drawing on much governmental research, the authors conclude that, in spite of the recent spate of international mergers, multinational corporations are actually corporate dinosaurs and remain stubbornly national in character, tied to their countries of origin. (LJ 3/15/98)

Library Journal