Who gets what: the MNE, the national state and the distributional effects of globalization
Globalization is the outcome of the interface between national states and MNEs. It is a negotiated solution rather than perfect market equilibrium. Even in a global liberalized world, national states are trying to generate as much welfare for their residents as they can, while MNEs try to maximize their value. This creates a bargaining situation. A stylized game theory model is presented and discussed, in order to gain insights into the income distributional effects of the globalization process. Two important features of the model are: (a) that there is a need for a carefully spelt out strategy, and (b) that optimal solutions depend on an ability to identify the elements of the bargaining where the opportunity cost is low. A case study of the negotiation between the State of Israel and Intel is presented as an illustration for this general model. Journal of International Business Studies (2003) 34, 416–427. doi:10.1057/palgrave.jibs.8400041
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Volume (Year): 34 (2003)
Issue (Month): 5 (September)
|Contact details of provider:|| Web page: http://www.palgrave-journals.com/|
|Order Information:|| Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK|
Web: http://www.palgrave-journals.com/pal/subscribe/index.html Email:
When requesting a correction, please mention this item's handle: RePEc:pal:jintbs:v:34:y:2003:i:5:p:416-427. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Iulia Badea)
If references are entirely missing, you can add them using this form.