The Multinational Paradigm
AbstractNontechnical yet analytically rigorous, The Multinational Paradigm represents a new direction in understanding the multinational corporation. Aliber suggests that changes in the relative rates of economic growth of countries lead to changes in exchange rates that have an important impact on the financing, sourcing, and marketing decisions and practices of individual firms. He provides a unique perspective for examining what is different about business in a global context by placing these decisions in the framework of the multinational paradigm—the choice between whether the firm should centralize or decentralize its production, marketing, and finance and the factors involved in this trade-off. Aliber's theory is the first to adequately explain why the flow of direct foreign investment shifted in the 1980s toward the US as a host country. In a framework that Aliber calls "the Andy Warhol view of countries in the world economy," he proposes that every country has a short time span (15, 20, or perhaps even 30 years) during which it grows rapidly; thus individual countries experience growth at different times. He argues that during this growth period real interest rates and profit rates are high, capital flows to the country, and its currency appreciates. New firms are formed at an increasingly rapid rate, and the average age of both the labor force and the industrial plant and equipment of the typical firm decreases. When the growth rate within a country slows, these conditions are reversed. In separate chapters, Aliber discusses the implications of changes in growth rates of individual countries for strategic management and for financing decisions (currency denomination of a firm's debt, cash management practices, capital budgeting). He applies the multinational paradigm to decisions about location of plants and to the trade-offs between global and national marketing. Changes in the pattern of direct foreign investment are analyzed and conflicts between host governments and multinational corporations are evaluated in terms of the paradigm.
Download InfoTo our knowledge, this item is not available for download. To find whether it is available, there are three options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
Bibliographic InfoThis book is provided by The MIT Press in its series MIT Press Books with number 0262511517 and published in 1993.
Contact details of provider:
Web page: http://mitpress.mit.edu
multinational corporations; multinational paradigm;
Find related papers by JEL classification:
- F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- McCann, Philip & Arita, Tomokazu & Gordon, Ian R., 2002. "Industrial clusters, transactions costs and the institutional determinants of MNE location behaviour," International Business Review, Elsevier, vol. 11(6), pages 647-663, December.
- William Goulding & Daniel E. Nolle, 2012. "Foreign banks in the U.S.: a primer," International Finance Discussion Papers 1064, Board of Governors of the Federal Reserve System (U.S.).
- Bitzenis, Aristidis & Tsitouras, Antonis & Vlachos, Vasileios A., 2009. "Decisive FDI obstacles as an explanatory reason for limited FDI inflows in an EMU member state: The case of Greece," The Journal of Socio-Economics, Elsevier, vol. 38(4), pages 691-704, August.
- McCauley, Robert & McGuire, Patrick & von Peter, Goetz, 2012. "After the global financial crisis: From international to multinational banking?," Journal of Economics and Business, Elsevier, vol. 64(1), pages 7-23.
- McCann, Philip & Arita, Tomokazu, 2006. "Clusters and regional development: Some cautionary observations from the semiconductor industry," Information Economics and Policy, Elsevier, vol. 18(2), pages 157-180, June.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Jake Furbush).
If references are entirely missing, you can add them using this form.