Multinational Corporations: A European View

Abstract

The preponderance of United States investments vis-à-vis European investments creates an unbalanced situation with political, economic, and psychological overtones. Europe is but a geographical expression as yet. Therefore it is misleading to search for a common posture in what amounts to a composite position of various countries. National response to American investments, although different in each area and period, nonetheless is positive in its final acceptance. From the dollar gap to the technological gap, Europe has eagerly sought American investments, reaching the peak with the establishment of the Common Market. Americans took advantage of its potentials more readily than Europeans. However, charges and criticisms exchanged between Europe and America persist in spite of the fact that the flood of U.S. investments seems to have subsided. Although catchy, the objections are mostly ill-founded. Multinational corporations, regardless of their national origin, are bound to play the rules of the game not only in their own interest, but in the wider interest of the international and the various national economies. Since multinational corporations are expected to play an increasing role in the international arena, a better understanding with governments and public opinion at large must be promoted. As long as laws and regulations issued by individual governments are obeyed, the conflict between national sovereignty and multinationalism is limited in practice. Multinational corporations do not have powers adequate to overrule governments, nor would it be in their interest to do so if they could. Governments have powers to control, in their own territories, multinational corporations. In the future, an economically integrated and politically united Europe will be a reality and will be a fertile ground as a base and as a host for the operations of multinational corporations.