Global or Stateless Corporations are National Firms with International Operations

Reich R. , “Who Is Us?,” Harvard Business Review (January/February 1990).

Ohmae K. , The Borderless World (London: Collins, 1990), p.194.

Parentage of the term was first pointed out by Baran P. Sweezy P. , Monopoly Capital (London: Penguin, 1966), p. 192. It was confirmed by Fieldhouse D. , “The Multinational: A Critique of a Concept,” in Teichova A. , The Multinational Enterprise in Historical Perspective (Cambridge: Cambridge University Press, 1986).

Kindleberger C.P. , American Business Abroad (New Haven, CT: Yale University Press, 1969), lecture 6.

The question of the nationality of the MNC was first raised by Stephen Hymer in his doctoral thesis, published posthumously. See Hymer S. , The International Operations of National Firms (Cambridge, MA: MIT Press, 1976). See also Hu Y.S. , The Impact of U.S. Investment in Europe: A Case Study of the Automotive and Computer Industries (New York, NY: Praeger, 1973), pp. 252–267.

Reich R. , The Work of Nations (New York, NY: Knopf, 1991).

Perlmutter Howard , “The Tortuous Evolution of the Multinational Corporation,” Columbia Journal of World Business (January/February 1969).

Hu Y.S. , op. cit., p. 256. The reasons for this preferences for 100% ownership are also explained, see pp. 257–259.

Business Week “The Stateless Corporation,” May 14, 1990, p. 57.

Walter I. Smith R. , Investment Banking in Europe (Oxford: Blackwell, 1989), pp. 77–79.

See Albert Michel , Capitalisme Contre Capitalisme (Paris: Seuil, 1991).

Penrose E. , “Foreign Investment and the Growth of the Firm,” Economic Journal (June 1956).

The balance of payments effects should include the effects on exports, imports, royalties, licence fees, etc. as well as the outflow of dividends, and the effects should in theory be assessed against what would otherwise have happened.

Items denominated in foreign currencies incur translation, transaction, and economic exposures to exchange movements. Items denominated in the home currency only incur economic exposure.

See ICI's Annual Report for 1989.

OECD, The Industrial Policy of Japan (Paris: OECD, 1972), p. 15.

Servan-Schreiber J.J. , Le Défi Americain (Paris: Denoël, 1967), Chapter 4.

Business Week, December 17, 1990, pp. 50–52.

See Blumberg P. , “The American Law of Corporate Group,” and D. Muchlinski, “Group Liability and the Multinational Enterprise,” papers presented at the University of Warwick Workshop on Corporate Control and Accountability, June 30-July 2, 1991.

See, Barcelona Traction, Light and Power Co. Ltd. (Belgium v. Spain), International Court of Justice 1970, and Nottebohm (Liechtenstein v. Guatemala), ICJ 1953 (111) and ICJ 1955 (93).

International Herald Tribune, July 23, 1991 and July 25, 1991.

Newsweek, “How Multinational Firms Use Transfer Pricing to Evade At Least $20 Billion in U.S. Taxes,” April 15, 1991.

Morgenthau H. , Politics Among Nations (New York, NY: Knopf, 1978), p. 494.

Ouchi W. , The M-Form Society (New York, NY: Avon, 1986), various chapters. A social memory consists of a network of civic, business, and government associations/institutions that not only can remember who has been cooperative and who has been selfish, but also has the ability to reward and punish when the time comes. A social memory is what was called a sense of community, a sense of responsibility, a sense of civic-mindedness. Serial equity is equity which is achieved over a long period of time, so that a group that is disadvantaged today knows that its sacrifices will not be forgotten.

Wortmann M. , “Multinationals and the Internationalization of R&D: New Developments in German Companies,” Research Policy (April 1990).

Annual report.

The McKinsey Quarterly (Winter 1990), p. 24.

Business Week, March 12, 1990, pp. 20–21.

International Herald Tribune, February 7, 1991 and February 8, 1991.

Reich (1990), op. cit.

Business Week, “Honda, Is It an American Car?” November 18, 1991.

The transfer of management practices between national systems is discussed by Whitley Richard , Societies, Firms and Markets in East Asia (forthcoming), Chapter 8.

The Economist, “The State of the Nation-State,” December 22, 1990.

List Friedrich , The National System of Political Economy (originally published in 1841), Chapter 15.