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The Myth of the Global Corporation, by Paul Doremus, William W. Keller, Louis W. Pauly, Simon Reich
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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.
- Sales Rank: #4129400 in Books
- Brand: Brand: Princeton University Press
- Published on: 1999-05-10
- Released on: 1999-05-30
- Original language: English
- Number of items: 1
- Dimensions: 9.00" h x .52" w x 6.00" l, .66 pounds
- Binding: Paperback
- 208 pages
- Used Book in Good Condition
From Library Journal
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.
Copyright 1999 Reed Business Information, Inc.
Review
"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
"This book provides excellent background reading for anyone interested in multinational corporate finance and investments."--Library Journal
"This work is concisely yet lucidly presented. . . . Recommended for all those interested in the global economy."--Choice
From the Back Cover
"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
Most helpful customer reviews
16 of 18 people found the following review helpful.
useful antidote to globalization hype
By Willem Noe
In an era where one book after the other seems to extoll the story of the globalisation Juggernaut, the reader can all too easily get the impression that all in the economy is now globalizing. Do not borders cease to exist for one enterprise and sector after the other? Although you can argue this is true to some extent for a number of sectors and production processes, at the same time it is not quite the whole story and creates a false or misleading image. The authors argue that enterprises are not only economic but als political actors, and for me as an economist this was an interesting point.
This book then provides a sober antidote to this misperception of transnational corporations as truly borderless production systems that only seek the most efficient way to produce and where nationality does not matter. It provides a convincing overview of how even the largest 'transnational' corporations remain to a large extent 'national', if not in their economics then in their politics. With thorough empirical work it is shown that globalizing activities of transnational enterprises in OECD countries mostly still have a home bias along a number of dimensions. I confess that this was also for me (economist dealing with glabalization) a good sobering read that helped me to keep a perspective and offered a number of novel ideas. Recommended.
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