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Multinational Corporations and the New International Division of Labor: A Critical Appraisal

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  • Erica Schoenberger

    (Department of Geography and Environmental Engineering, the Johns Hopkins University, Baltimore, Maryland 21218)

Abstract

The new international division of labor model assigns a major role to the multinational corporation as the orchestrator of a global reallocation of manufacturing away from core industrial countries towards the periphery. Here it is argued that the new international division of labor thesis construes too narrowly the relationship between technological and organizational change in production, cost competitiveness, and corporate location strategies. Further, understanding the role of the multinational corporation depends also on an analysis of the nature of output markets and the competitive strategies of firms. Evidence concerning the distribution of U.S. manufacturing investment abroad is presented, followed by a discussion of changes in production processes, markets, and competitive strategies as they influence international location choice.

Suggested Citation

  • Erica Schoenberger, 1988. "Multinational Corporations and the New International Division of Labor: A Critical Appraisal," International Regional Science Review, , vol. 11(2), pages 105-119, August.
    • Handle: RePEc:sae:inrsre:v:11:y:1988:i:2:p:105-119
    DOI: 10.1177/016001768801100201
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    References listed on IDEAS

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    1. Raymond Vernon, 1966. "International Investment and International Trade in the Product Cycle," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 80(2), pages 190-207.
    2. Peter J. Buckley & Mark Casson, 1991. "The Future of the Multinational Enterprise," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-21204-0.
    3. Caves, Richard E, 1971. "International Corporations: The Industrial Economics of Foreign Investment," Economica, London School of Economics and Political Science, vol. 38(149), pages 1-27, February.
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    2. Robert B. Begg, 1993. "Planning and Regional Science," The Review of Regional Studies, Southern Regional Science Association, vol. 23(1), pages 71-86, Summer.
    3. Christerson, Brad & Appelbaum, Richard P., 1995. "Global and local subcontracting: Space, ethnicity, and the organization of apparel production," World Development, Elsevier, vol. 23(8), pages 1363-1374, August.

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