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The Myth of the Global Corporation


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Table of Contents

LIST OF TABLES AND FIGURES ix PREFACE xi CHAPTER 1 National Firms in Global Commerce 3 The Appearance of Convergence 4 Innovation and the State 6 Domestic Structures, Multinational Corporate Strategies 7 Overview of the Book 10 CHAPTER 2 States and Firms: Conventional Images, Complex Realities 11 The Nature of MNCs 11 Global-Local Politics 14 The Policy Context 18 CHAPTER 3 National Foundations of Multinational Corporate Activity (I) 22 Corporate Governance and Finance 22 Comparative Analysis of the United States, Germany and Japan, 24 CHAPTER 4 National Foundations of Multinational Corporate Activity (II) 59 Innovation Systems 60 Investment Systems 74 Structural Context and Multinational Corporate Behavior 83 CHAPTER 5 The Strategic Behavior of MNCs 84 Technology and Commerce 84 Direct Investment and Intrafirm Trade 115 Interaction of Corporate Investment, Trade, and Innovation 133 CHAPTER 6 Corporate Diversity and Public Policy 138 Globalization at Bay 138 The Politics of Deepening Economic Integration 142 Public Policy and Increasing Complexity 144 NOTES 151 SELECTED BIBLIOGRAPHY 183 INDEX 189

Promotional Information

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

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.


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)

"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

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