Influences on the location and behaviour of transnational corporations: Some examples taken from Japanese investment in Australia

Abstract

This paper reviews previous approaches to studying transnational corporate locational behaviour in host countries. It is argued that an over-preoccupation with corporate bargaining power has obscured influences arising from: (a) the cultural and home country factors which influence transnational corporation (TNC) strategies and motivations; (b) the host country's physical, economic and regulatory environment; and (c) host government intervention in response to TNC activity. Case studies of Japanese post-war investment in Australia are given which indicate that final outcomes have evolved through interactions between corporate motivations and strategies, and local opportunities and constraints.