Rugman Reviewsnternation

Alan M. Rugman

macmiUan

Contents

List of Figures and Tables xxii

Preface xxiii

Introduction xxv

Part I Theory of the Multinational Enterprise

Introduction to Part I (includes the, FSA/CSA Framework) 3

7 The Multinational Enterprise 13John H. Dunning (ed.). New York: Praeger, 1972Review reprinted from: Southern Economic Journal 40(1) (July1973): 156-157

2 Oligopolistic Reaction and Multinational Enterprise 16Frederick T. Knickerbocker. Boston: Division ofResearch, Graduate School of BusinessAdministration, Harvard University, 1973Review reprinted from: Eastern Economic Journal, 1(1)(January 1974): 86-87

3 Managing the Multinational Enterprise 19John M. Stopford and Louis T. Wells, Jr. New York:Basic Books; London: Longman, 1972Unpublished review, 1973

4 Transfer Pricing in Multinational Firms: A HeuristicProgramming Approach and a Case Study 22Lars Nieckels. Stockholm: Almqvist and Wiksell;New York: John Wiley, 1976Review reprinted from: Journal of International Economics 7(2)(May 1977): 217-219

5 The Future of the Multinational Enterprise 25Peter J. Buckley and Mark Casson. London:Macmillan; Teaneck, NJ: Holmes and Meier, 1976Review reprinted from: Southern Economic Journal 44(2)(October 1977): 410-411

6 The Multinational Corporation and the Resource Costof International Technology Transfer 28D.J. Teece. Cambridge, MA: Ballinger, 1977.Distributed by J. Wiley & SonsReview reprinted from: The Economic Journal 87(347)(September 1977): 666

7 A Bibliography of International Business 29Michael Z. Brooke, Mary Black, and Paul Neville.London: Macmillan, 1977Review reprinted from: The Economic Journal 87(348)(December 1977): 832

8 Political Risks in International Business: InvestmentBehavior of Multinational Corporations 30Lars H. Thunell. New York: Praeger, 1977.Distributed by Martin RobertsonReview reprinted from: The Economic Journal 88(349) (March1978): 200

9 Storm over the Multinationals: The Real Issues 32Raymond Vernon. London: Macmillan, 1977Review reprinted from: The Economic Journal 88(350) (June1978): 404

10 The International Operations of National Firms:A Study of Direct Foreign Investment 33By Stephen H. Hymer. Cambridge, MA: MITPress, 1976Review reprinted from: Journal of International Business Studies,9(2) (Fall 1978): 103-104

n Research and Development Abroad by U.S.Multinationals 36Robert Ronstadt. New York; London: Praeger, 1977Review reprinted from: The Economic Journal 88(351)(September 1978): 640

CONTENTS

72 European Research in International Business 37

Michel Gher tman and James Leontiades.

Ams te rdam: Nor th Ho l land Publ ish ing Co., 1978Review reprinted from: The Economic Journal 89(353) (March1979): 219-220

73 The Multinational Corporation: A Radical Approach 38

Stephen H. Hymer. Robert B. Cohen et al. (eds).

Cambridge: Cambridge University Press, 1979Review reprinted from: The Economic Journal 90(360)(December 1980): 985

14 Technology Licensing and Multinational Enterprises 39

Piero Telesio. New York: Praeger, 1979Review reprinted from: The Economic Journal 90(360)(December 1980): 986-987

75 The World Directory of Multinational Enterprises 41

John M. Stopford, John H. Dunning and Klaus

O. Haberich (eds). London: Macmillan, 1980Review reprinted from: The Economic Journal 91(364)(December 1981): 1112-1113

16 The Multinational Corporation 43

Sanjaya Lall. London: Macmillan, 1980Review reprinted from: The Economic Journal 92(365) (March1982): 196-198

77 Multinational Management 46

David Rutenberg. Boston: Litt le, Brown and

Company, 1982Review reprinted from: Journal of International Business Studies14(2) (Fall 1983): 160-162

78 The Multinational Corporation in the 7980s 50

Charles P. Kindleberger and David B. Audretsch

(eds). Cambridge, MA; London: MIT Press, 1983Review reprinted from: The World Economy (September 1983): 356

79 Multinational Enterprises and Economic Analysis 52

Richard E. Caves. Cambridge and New York:

Cambridge University Press, 1982Review reprinted from: Canadian Journal of Economics 16(4)(November 1983): 742-744

CONTENTS

20 Multinational Excursions 55

Charles P. Kindleberger. Cambridge, MA; London:

MIT Press, 1984Review reprinted from: The Economic Journal 95(379)(September 1985): 865

27 Third World Multinationals: The Rise of Foreign Direct

Investment from Developing Countries 56

Louis T. Wells, Jr. London: MIT Press, 1983, Review reprinted from: Third World Affairs (1986): 444-445

22 Licensing in International Strategy: A Guide for

Planning and Negotiations 60

Farok Contractor. Westport, CT: Quorum Books, 1985Review reprinted from: Journal of International Business Studies,18(1) (Spring 1987): 99-101

23 Clobal Capitalism at Bay? 64

John H. Dunning. London; New York:

Routledge, 2001Review reprinted from: Transnational Corporations 11(1) (April2002): 113-116

24 Politics and International Investment 68

Witold Henisz. Cheltenham: Edward Elgar, 2002Review reprinted from: Journal of International Business Studies34(2) (March 2003): 223-225

Part II International Finance and International

Economics

Introduction to Part II (includes the Integration/National

Responsiveness Framework) 75

25 Managing Across Borders: The Transnational Solution 81

Christopher A. Bartlett and Sumantra Ghoshal.

Boston: Harvard Business School Press, 1989Review reprinted from: The Globe and Mail (Toronto, Canada)(October 9, 1989): B2

CONTENTS

International Finance26 The Floating Canadian Dollar: Exchange Flexibility and

Monetary Independence 84Paul Wonnacott. Washington, DC: AmericanEnterprise Institute for Public Policy Research, 1972Review reprinted from: Canadian Journal of Economics 6(i)(February 1973): 140-141

27 International Monetary Policy: Bretton Woods and After 86W.M. Scammell. London: Macmillan, 1975Review reprinted from: Kyklos 29(1) (1976): 180-181

28 Financial Policies for the Multinational Company: TheManagement of Foreign Exchange 88R. Aggarwal. New York: Praeger, 1976, distributed byMartin Robertson & Co.Review reprinted from: The Economic Journal, 87(347) (June

1977): 403

29 International Capital Markets 89Edwin J. Elton and Martin J. Gruber (eds).Amsterdam and New York: North-Holland/AmericanElsevier, 1975Review reprinted from: Journal of Finance 32(4) (September1977): 1382-1384

30 The Failure of World Monetary Reform, 1971-74 92John Williamson. Thomas Nelson & Sons, 1977

The Evolution of the International MonetarySystem, 1945-77Brian Tew. London: Hutchinson &. Co. Ltd., 1977Review reprinted from: Economica, n.s. 45(180) (November1978): 421-422

37 New Means of Financing International Needs 94Eleanor Steinberg and Joseph A. Yager, with GerardBrannon. Washington, DC: The BrookingsInstitution, 1978Review reprinted from: Kyklos 31(4) (1978): 738-739

CONTENTS IX

32 A Framework of International Banking 97Stephen F. Frowen (ed.). Guildford, UK:Guildford Educational Press/Philip ThornAssociates, 1979Review reprinted from: Southern Economic Journal 46(3)(January 1980): 990-991

31 Mad Money: When Markets Outgrow Government 100Susan Strange. Manchester, UK: ManchesterUniversity Press, 1998Review reprinted from: International Affairs 75(2) (April 1999): 414

International Economics34 Price Elasticities in International Trade: An Annotated

Bibliography 102Robert M. Stern, Jonathan Francis and BruceSchumacher. London: Macmillan for the Trade PolicyResearch Centre, 1976Review reprinted from: Kyklos (1997) 30(3): 570-571

35 Fiscal Transfer Pricing in Multinational Corporations 104G.F. Mathewson and G.D. Quirin. Toronto:University of Toronto Press, 1979Review reprinted from: The Economic Journal 90(358) (June1980): 460

36 Transfer Pricing and Multinational Corporations: AnOverview of Concepts, Mechanisms and Regulations 105Sylvain Plasschaert. Farnborough, UK: SaxonHouse, 1979Review reprinted from: Economic Journal 90(358) (June 1980):460-461

37 Measurement of Nontariff Barriers 106Alan V. Deardorff and Robert M. Stern. Ann Arbor,Ml: University of Michigan Press, 1998Reprinted from: The Economic Journal Book Notesweb page listed 1999-July 2000 www.res.org.uk/ecojbknotes/default.asp

CONTENTS

38 Rags and Riches: Implementing Apparel Quotas underthe Multi-Fibre Arrangements 107Kala Marathe Krishna and Ling Hui Tan. Ann Arbor,Ml: University of Michigan Press, 1998Review reprinted from: The Economic Journal 111(2000)Book Notes webpage, www.res.org.uk/ecojbknotes/default.asp

39 Trade Rules in the Making: Challenges in Regional andMultilateral Negotiations 109M.R. Mendoza, P. Low and B. Kotschwar (eds).Washington: Brookings Institution Press/OAS, 1999Review reprinted from: The Economic Journal 111(469) (Feb.2001): Fi62-Fi63

40 Globalisation and International Trade Liberalisation:Continuity and Change 111Martin Richardson (ed.). Cheltenham: EdwardElgar, 2000Review reprinted from: Business Strategy Review 12(2) (Summer2001): 74

41 Free Trade under Fire 113Douglas A. Irwin. Princeton, N.J., and Woodstock,UK: Princeton University Press, 2002Review reprinted from: International Affairs 78(4) (October2002): 909-910 1

Part III Globalization and Economic Integration

Introduction to Part III (includes the Friedman

Framework) 117

42 Between Dependency and Autonomy: India's Experiencewith the International Computer Industry 125Joseph M. Grieco. Berkeley: University of CaliforniaPress, 1984Review reprinted from: Business History Review 59(3) (Autumn

1985): 533-535

XI

43 Transnational Monopoly Capitalism 128K. Cowling and R. Sugden. Brighton, UK: WheatsheafBooks, 1987Review reprinted from: Economic Record 68(190) (September1989): 314-315

44 Juggernaut: The German Way of Business 131Philip Glouchevitch. New York: Simon andSchuster, 1992Review reprinted from: Financial Times of Canada (December12, 1992): 23

45 Runaway World: How Globalization Is Reshaping our Lives 133Anthony Giddens. London: Profile, 1999Review reprinted from: Business Strategy Review 12(2) (Summer2001): 69-70

46 Globalization and Culture 135John Tomlinson. Cambridge: Polity Press, 1999Review reprinted from: International Affairs 75(4) (October1999): 837

47 Future Positive: International Cooperation in the 21st

Century YilMichael Edwards. London: Earthscan, 1999Review reprinted from: International Affairs 76(1) (Jan. 2000):151-152

48 Global ism and the New Regionalism 138Bjorn Hettne, Andres Inotai and Osvaldo Sunkel(eds). Basingstoke: Macmillan, 1999Review reprinted from: International Affairs 76(1) (January2000): 146

49 Globalisation and the Asia-Pacific: Contested Territories 140Kris Olds, Peter Dicken, Philip F. Kelly, Lily Kong andHenry Wai-chung Yeung (eds). London; New York:Routledge, 1999Review reprinted from: International Affairs 76(4) (October2000): 904

XU CONTENTS

50 Globalization and Its Critics: Perspectives from PoliticalEconomy 142Randall D. Germain (ed.). Basingstoke: Macmil lan,in association with the Political Economic ResearchCentre, University of Sheffield. 1999; New York:St. Martin's PressReview reprinted from: International Affairs 76(4) (October2000): 868

51 The Challenge of Global Capitalism: The WorldEconomy in the 21st Century 143Robert Gi lpin. Princeton, NJ: Princeton UniversityPress, 2 0 0 0Review reprinted from: International Affairs 77(1) (January 2001): 200

52 The Political Economy of Globalization 145Ngaire Woods (ed.). Basingstoke: Macmil lan, 2000Review reprinted from: International Affairs 77(1) (January 2001):2OO-2O1

53 Global Transformations: Politics, Economics and Culture 146David Held, Anthony McGrew, David Goldblattand Jonathan Perraton. Cambridge: PolityPress, 1999Review reprinted from: International Affairs 77(2) (April2001): 434

54 The Invisible Continent: Four Strategic Imperatives ofthe New Economy 148Kenichi Ohmae. London: Nicholas Brealey, 2000Review reprinted from: International Affairs 77(3) (July 2001):715-716

55 Ruling the Waves: Cycles of Discovery Chaosand Wealth from the Compass to theInternet 150Debora L. Spar. New York: Harcourt, 2001Review reprinted from: Business Horizons 45(2) (March-April2002): 84-85

CONTENTS X l l l

56 The Quest for Global Dominance 153Vijay Govindarajan and Anil K. Gupta. San Francisco:Jossey-Bass, 2001Review reprinted from: Academy of Management Executive 16(3)(August 2002): 157-159

57 Globalization and its Discontents 156Joseph E. Stiglitz. New York: Norton, 2002Review reprinted from: Long Range Planning 35(6) (December2002): 654-656

58 Governing Globalization: Power, Authority and GlobalGovernance 159David Held and Anthony McGrew (eds). Cambridge:Polity Press, 2002Review reprinted from: International Affairs 80(1) (January2004): 139

59 Redefining Global Strategy: Crossing Borders in a WorldWhere Differences Still Matter 161Pankaj Ghemawat. Boston: Harvard Business SchoolPress, 2007Review reprinted from: Journal of International Business Studies39(6) (September 2008): 1091-1093

Part IV Free Trade, NAFTA and Competitiveness

Introduction to Part IV (includes the Porter Diamond andDouble Diamond) 169

60 The Great Canadian Stampede: The Rush to EconomicNationalism 175Alan Heisey. Toronto: Griffin House, 1973Review reprinted from: Canadian Forum 54(644) (Sept. 1974): 47

61 Canada-United States Free Trade and CanadianIndependence 177Peyton V. Lyon. Ottawa: Economic Council ofCanada, 1975Reviewed reprinted from: Canadian Public Policy/Analyse depolitiques 2(1) (Winter 1976): 124-125

CONTENTS

62 Energy from the Arctic: Facts and Issues 180

Judith Maxwell. Montreal: Canadian-American

Committee, 1973Review reprinted from: Journal of Energy and Development 1(2)

(1976): 352-354

63 Tariff and Science Policies: Applications of a Model of

Nationalism 184

D.J. Daly and S. Globerman. Toronto and Buffalo:

University of Toronto Press for the Ontario Economic

Council, 1976Review reprinted from: Canadian Journal of Economics 11(3)(August 1978): 632-634

64 The Effects of Energy Price Changes on Commodity

Prices, Interprovincial Trade and Employment 187

J.R. Melvin. Toronto and Buffalo: University of

Toronto Press, 1976Review reprinted from: Journal of Energy and Development 2(2)(Spring 1977): 346-349

65 Coal and Canada-U.S. Energy Relations 190

Richard L. Gordon. Montreal: Canadian-American

Committee, 1976Review reprinted from: Journal of Energy and Development 3(2)(Spring 1978): 439-441

66 Nationalism, Technology and the Future of Canada 193

Wallace Gagne (ed.). Toronto: Macmillan of

Canada, 1976Review reprinted from: Journal of Economic History 38(2) (June1978): 539-54O

67 The Impact of Free Trade in Canada 195

Roma Dauphin. Ottawa: Economic Council of

Canada, Supply and Services Canada, 1978Review reprinted from: Canadian Public Policy 4(4) (Autumn1978): 576-577

CONTENTS

68 Foreign and Domestic Firms in Canada: A ComparativeStudy of Financial Structure and Performance 197Daniel Shapiro. Toronto: Butterworth, 1980Review reprinted from: Canadian Journal of Economics 14(4)(November 1981): 739-741

69 U.S. Competitiveness in the World Economy 200Bruce R. Scott and George C. Lodge (eds).Boston: Harvard Business SchoolPress, 1985Review reprinted from: Policy Options Politiques (April 1985):15-16

70 Weathering the Storm: Canadian-U.S. Relations,1980-83 204David Leyton-Brown. Toronto: CD. Howe Instituteand National Planning Association, 1985Review reprinted from: Canadian Journal of Political Science18(4) (December 1985): 796-797

77 Canadian Multinationals 207

Jorge Niosi. Toronto: Between the

Lines, 1985Review reprinted from: Canadian Public Policy 12(1) (March1986): 273-274

72 The Competitive Advantage of Nations 209Michael E. Porter. New York: Free Press; Toronto:Collier Macmillan, 1990Review reprinted from: Business Quarterly 55(3) (Winter 1991):61-64

73 Canada at the Crossroads: The Reality of a New

Competitive Environment 217

Michael Porter. Ottawa: Business Council on

National Issues and Minister of Supply and Services,

October 1991Review reprinted from: Business Quarterly 57(3) (Winter 1992):59-64

74 The Innovative Society: Competitiveness in

the 1990s 227

Bryne B. Purchase. Toronto: C D . Howe

Institute, 1991Review reprinted from: Canadian Public Policy 17(3) (Sept. 1991):

373-374

75 Continental Accord: North American Economic

Integration 229

Steven Globerman (ed.). Vancouver, BC: The Fraser

Institute, 1991Review reprinted from: Journal of International Business Studies24(1) (First Quarter 1993): 159-161

76 Decision at Midnight: Inside the Canada-U.S. Free

Trade Negotiations 233

Michael Hart (with Bill Dymond and Colin

Robertson). Vancouver: University of British

Columbia Press, 1994Review reprinted from: Canadian Foreign Policy 2(3) (Winter

1994/1995): 124-128

77 The Post-NAFTA Political Economy: Mexico and the

Western Hemisphere 239

Carol Wise (ed.). University Park, PA: Pennsylvania

State University Press, 1998Review reprinted from: International Affairs 75(3) (July 1999):675-676

78 Linking Trade, Environment and Social Cohesion:

NAFTA Expansion, Global Challenges 241

By John J. Kirton and Virginia W. Maclaren.

Aldershot: Ashgate, 2000Review reprinted from: Business Horizons 46(1)(January/February 2003): 69-71

79 It's the Crude, Dude: War; Big Oil and the Fight for

the Planet 245

Linda McQuaig. Scarborough, O N : Doubleday

Canada, 2004Review reprinted from: Literary Review of Canada 12(10)(December 2004): 8-9

CONTENTS XV11

Part V Regulation of Multinationals: Civil Society

and Development

Introduction to Part V (includes the Five Partners

Flagship Framework) 253

80 Importing Technology into Africa: Foreign Investment

and the Supply of Technological Innovations 257

D. Babatunde Thomas. (Praeger Special Studies in

International Economics and Development). New

York: Praeger, 1976Review reprinted from: Kyklos 30(2) (1977):325-326

87 The Multinational Corporation and Social Change 259

D.E. Apter and L.W. Goodman (eds). New York:

Praeger, distributed by Martin

Robertson, 1976Review reprinted from: The Economic Journal 87(346) (June

1977): 4O3-4O4

82 National Control of Foreign Business Entry: A Survey of

Fifteen Countries 260

R.D. Robinson. New York: Praeger, Distributed by

Martin Robertson & Co. 1976Review reprinted from: The Economic Journal, 87(346) (June

1977), P- 410

83 Economics and the Environment 261

A.V. Kneese. Harmondsworth, UK: Penguin

Books, 1977Review reprinted from: Environment and Planning A 9(10)(October 1977): 1204

84 The International Taxation of Multinational

Enterprises 263

J.D.R. Adams and John Whalley. London: Associated

Business Programmes, 1977Review reprinted from: The Economic Journal 88(352)(December 1978): 905

XVll l CONTENTS

85 The Multinational Corporation, the Nation Stateand the Trade Unions: A EuropeanPerspective 264Gunnar Hedlund and Lars Otterbeck. Kent, Ohio:Kent State University Press, 1977Review reprinted from: The Economic Journal, Book notes,88(352) (December 1978): 906

86 Reducing Global Inequalities 265W. Howard Wriggins and Gunnar Adler-Karlsson.New York: McGraw Hill, 1978

Rich Nations and Poor Nations in theWorld EconomyAlbert Fishlow, Carlos F. Diaz-Alejandro, RichardR. Fagan, and Roger D. Hansen. New York: McGrawHill, 1978Review reprinted from: Journal of Developing Areas 13(3)(April 1979): 347-348

87 American Multinationals and American Interests 268C. Fred Bergsten, Thomas Horst, and TheodoreH. Moran. Washington, DC: The BrookingsInstitution, 1978Review reprinted from: The Economic Journal 89(356):1029-1030

88 Distortion or Development? Contending Perspectives onthe Multinational Corporations 270Thomas J. Biersteker. Cambridge, MA: MITPress, 1978Review reprinted from: Political Science Quarterly 94(4) (Winter1979-1980): 722-724

89 Multinationals from Small Countries 273Tamir Agmon and Charles P. Kindleberger (eds).Cambridge, MA: MIT Press, 1977Review reprinted from: Economic Development and CulturalChange 28(4) (July 1980): 871-875

CONTENTS

90 North-South Technology Transfer: A Case Study ofPetrochemicals in Latin America 279Mariluz Cortes and Peter Bocock. Baltimore andLondon: The Johns Hopkins UniversityPress, 1984Review reprinted from: Journal of Policy Analysis andManagement 4(3) (Spring 1985): 465-466

97 International Trade Policy and the Pacific Rim:Proceedings of the IEA Conference held in SydneyAustralia 280John Piggott and Alan Woodland (eds). Basingstoke,UK: Macmillan in association with IEA, 1999Review reprinted from: The Economic Journal, book note:16/09/99: http://www.reg.org.uk/ecojbknotes/row.asp?id=i6389

92 The World Trade Organization: Constitution andJurisprudence 282John H. Jackson. London: The Royal Institute ofInternational Affairs, 1998Review reprinted from: International Affairs 75(2) (April 1999):400-401

93 Trade, Investment and the Environment 284Halina Ward and Duncan Brack (eds). London:Earthscan/Royal Institute of InternationalAffairs, 2000Review reprinted from: International Affairs 76(2) (April 2000):365-366

94 Development as Freedom 286By Amartya Sen. Oxford: Oxford University Press,1999Review reprinted from: International Affairs 77(2) (April 2001):435-436

95 Fighting the Wrong Enemy: Antiglobal Activists andMultinational Enterprises 288Edward M. Graham. Washington, DC: Institute forInternational Economics, 2000Review reprinted from: International Affairs 77(4) (October2001): 994-995

CONTENTS

96 Guiding Global Order: G8 Governance in theTwenty-First Century 290John J. Kirton, Joseph P. Daniels and AndreasFreytag (eds). Aldershot, UK: Ashgate, 2001Review reprinted from: International Affairs 77(4) (October2001): 995-996

97 Taking Trade to the Streets: The Lost History of PublicEfforts to Shape Globalization 292Susan Ariel Aaronson. Ann Arbor, Ml: TheUniversity of Michigan Press, 2001Review reprinted from: Business History Review 76(4) (Winter2002): 883-885

98 Globalization and National Economic Welfare 295M. Panic". Basingstoke: Palgrave Macmillan, 2003Review reprinted from: International Affairs 79(4) (July2003): 905-906

99 The Economic Dynamics of Environmental Law 297David M. Driesen (ed.). Cambridge, MA: MITPress, 2003Review reprinted from: Environmental Science <s[ Policy 6(6)(December 2003): 547

700 Trading Blocs: States, Firms, and Regions in the WorldEconomy 300Kerry A. Chase. Ann Arbor, Ml: The University ofMichigan Press, 2065Review reprinted from: Perspectives on Politics 4(4) (December2006): 803-804

Conclusion 304

Acknowledgments 307

Index 315

CONTENTS