Emerging patterns of multinational enterprise operations in developed market economies: evidence and policy

Abstract

In their attempt to adapt to the extreme flexibility requirements of the current international competitive environment multinational enterprises have enriched their menu of means for international expansion with many forms of minority equity investments and nonequity interfirm alliances. The rapid proliferation of these new means of international operation has opened a Pandora's box for governments; the increased internationalization of business in a large number of manufacturing industries has certainly decreased the possibilities for the successful implementation of strictly internally focused economic policies. The fact that this internationalization is a bottom-up procedure (firms reacting to market conditions) and that its causes seem only to be intensifying in the foreseeable future has conviced governments of developed market economies to accept the resulting global interdependence as a rather permanent feature of international competition and try to accomodate national priorities accordingly. Econ...