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Some Issues of Political Economics of Multinational Corporations

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  • Tomáš Evan
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    Abstract

    The existence of multinational corporations is not self-evident. These corporations have costs linked with business in foreign countries compared to their domestic competitors. Therefore, in the long term, they must have particular advantages over domestic firms. These advantages are external to the market system, and in order to make them exist, a governmental activity is necessary. The government, through its intervention on the market, increases transaction costs of using the market mechanism, and through this, it also increases the influence of multinational corporations. Today, the issue is the influence of active external macroeconomic policy and the policy towards investors which uses incentives for them. The bargaining between governments and MNCs has conformed more to the market rules. However, at the same time, it has also become more institutionalised and still remains in the mercantilistic tradition.

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    Bibliographic Info

    Article provided by University of Economics, Prague in its journal Acta Oeconomica Pragensia.

    Volume (Year): 2010 (2010)
    Issue (Month): 4 ()
    Pages: 32-43

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    Handle: RePEc:prg:jnlaop:v:2010:y:2010:i:4:id:311:p:32-43

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    Related research

    Keywords: multinational corporations; macroeconomic policy; incentives; foreign direct investment;

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    References

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    1. Kevin H. O'Rourke & Jeffrey G. Williamson, 2000. "When Did Globalization Begin?," NBER Working Papers 7632, National Bureau of Economic Research, Inc.
    2. James R. Markusen, 1997. "Trade versus Investment Liberalization," NBER Working Papers 6231, National Bureau of Economic Research, Inc.
    3. Bruce A. Blonigen & Matthew J. Slaughter, 1999. "Foreign-Affiliate Activity and U.S. Skill Upgrading," NBER Working Papers 7040, National Bureau of Economic Research, Inc.
    4. Martin Feldstein, 1994. "Taxes, Leverage and the National Return on Outbound Foreign Direct Investment," NBER Working Papers 4689, National Bureau of Economic Research, Inc.
    5. Coase, R H, 1988. "The Nature of the Firm: Origin," Journal of Law, Economics and Organization, Oxford University Press, Oxford University Press, vol. 4(1), pages 3-17, Spring.
    6. Coase, R H, 1988. "The Nature of the Firm: Meaning," Journal of Law, Economics and Organization, Oxford University Press, Oxford University Press, vol. 4(1), pages 19-32, Spring.
    7. Coase, R H, 1988. "The Nature of the Firm: Influence," Journal of Law, Economics and Organization, Oxford University Press, Oxford University Press, vol. 4(1), pages 33-47, Spring.
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