International Business and Government Relations in the 21st Century

Cover......Page 1
Half-title......Page 3
Title......Page 5
Copyright......Page 6
Contents......Page 7
Figures......Page 10
Tables......Page 11
Contributors......Page 13
Acknowledgments......Page 14
Introduction......Page 17
Conceptual bases......Page 20
An overview of the analyses......Page 23
business–government relations......Page 24
Part II: the shifting international business–government partnership......Page 26
Part III: bargaining theory and the obsolescing bargain......Page 30
Part IV: host and home government views of international business......Page 34
Conclusions......Page 37
Part I History and theories of analysis of international business–government relations......Page 39
1 Early US business-school literature (1960–1975) on international business–government relations: its twenty-first-century relevance......Page 41
The scope of this analysis......Page 44
Their days and their ways......Page 45
The rise of the MNE in relation to governments......Page 48
Political vulnerability......Page 50
Political risks......Page 51
The obsolescing bargain......Page 52
Sovereignty at bay......Page 53
Kindleberger on governments......Page 55
At last, a conceptual framework......Page 57
Fayerweather\'s conceptual framework......Page 58
Conflict resolution......Page 59
Additional contributors......Page 61
Conclusion......Page 62
Acknowledgments......Page 63
2 Institutional reform, foreign direct investment, and European transition economies......Page 65
Introduction......Page 67
Why is II an important locational asset?......Page 68
The analytical framework......Page 69
The strategies of (foreign) MNEs......Page 75
The opportunities and challenges offered by transition economies......Page 77
The empirical evidence......Page 79
Conclusions......Page 91
3 Corporate governance in the global economy: international convergence or continuing diversity?......Page 95
Introduction......Page 97
An expanded view of corporate governance......Page 100
Alternative governance systems......Page 103
Does governance matter?......Page 108
Conclusion: convergence or divergence?......Page 110
Appendix 1  Some definitions of corporate governance......Page 115
Shareowners......Page 116
Sources of governance standards......Page 117
4 Revisiting rival states: beyond the triangle?......Page 119
Post-Cold War globalization has changed the rules......Page 122
Extending the notion of the nation-state......Page 124
Civil society and the NGOs......Page 125
Investors\' dilemmas......Page 128
Clusters of resource......Page 129
Mastering multiple, complex relationships......Page 130
Part II The shifting international business–government partnership......Page 133
5 Foreign direct investment and government policy in Central and Eastern Europe......Page 135
Introduction......Page 137
A comparative perspective......Page 139
Institutional development and international business in CEE......Page 143
Acquisition entry, and the privatization processes......Page 147
Greenfield entry, and the bargaining for subsidies......Page 151
Conclusion......Page 159
6 Global warming and climate change: new issues for business strategy, government policy, and research on business–government relations......Page 163
Introduction......Page 165
Issues on firms\' agendas......Page 166
Underlying issues of science, economics, and politics......Page 169
The literature – a brief review of the most relevant studies and resources......Page 173
Global warming trends and their economic impacts......Page 174
Regulatory complexities......Page 177
Institutional uncertainties......Page 179
Markets for trading greenhouse gas emissions allowances and offset projects......Page 181
Implications for theory and research......Page 183
Analytic frameworks......Page 185
7 Business–government relations in the cultural industry: the evolution of the government\'s role in Korea......Page 187
Introduction......Page 189
The cultural industry and the Korean government......Page 191
Government roles toward business......Page 193
Models of business–government relations and research hypothesis......Page 195
Data......Page 199
Variables and analysis......Page 200
Results......Page 201
Discussion and conclusion......Page 203
8 Multinational enterprise, public authority, and public responsibility: the case of Talisman Energy and human rights in Sudan......Page 207
Private actors in international politics......Page 212
War in Sudan......Page 216
Oil and Talisman\'s entry......Page 218
Talisman\'s short, unhappy, Sudan experience......Page 219
Oil production exacerbated and changed the nature of the conflict......Page 221
Measures taken to provide security to oil operations have resulted in serious human rights violations......Page 222
Talisman\'s facilities were used to stage military action against both rebel and civilian targets......Page 223
Complicity......Page 224
Complicity or constructive engagement?......Page 226
Talisman\'s response......Page 229
The Canadian government backs off......Page 230
A governance gap......Page 231
9 Direct private foreign investment in developing countries – the judo trick......Page 233
Introduction......Page 235
The judo trick or \"crowding in\": the role of micro-enterprises......Page 238
Foreign investment and macroeconomic policies......Page 255
Export processing zones......Page 258
Government intervention and performance requirements......Page 262
Part III Bargaining theory and the obsolescing bargain......Page 265
10 From the obsolescing bargain to the political bargaining model......Page 267
Introduction......Page 269
The obsolescing bargain model......Page 270
Similarity of goals and relative stakes......Page 273
MNE goals......Page 274
HC goals......Page 275
(Dis)similarity of MNE–HC goals......Page 276
Size of the stakes......Page 277
MNE resources......Page 278
MNE–HC valuation......Page 279
Potential bargaining power......Page 280
HC constraints......Page 281
The bargaining outcome......Page 282
Discussion......Page 283
Conclusions......Page 284
Acknowledgements......Page 285
11 The bargaining view of government–business relations......Page 289
One view in more detail – the Behrman–Grosse model......Page 292
The bargaining relationship in a dynamic context......Page 296
Tying the examples together......Page 304
Conclusions......Page 305
12 Shifts of Chinese government policies on inbound foreign direct investment......Page 307
Introduction......Page 309
FDI policy shifts......Page 311
Shift from entry intervention to operational interference......Page 312
Shift from overt control to covert intervention......Page 316
Shift from separation to convergence in relation to domestic policies......Page 319
Shift from simplicity to complexity......Page 320
Shift from rigidity to elasticity......Page 323
Strategic responses of MNCs......Page 325
13 Has the obsolescing bargain obsolesced? Negotiating with foreign investors......Page 331
Introduction......Page 333
Research methodology......Page 334
Trends in MNC–host government investment disputes......Page 335
Bargaining between multinational corporations and Jamaica......Page 338
The initial bauxite and alumina bargain......Page 339
Obsolescence of the bauxite and alumina bargain......Page 340
Bargaining with foreign infrastructual firms: the 1980s and 1990s......Page 343
The initial telecommunications bargain......Page 344
Obsolescence of the telecommunications bargain......Page 345
Bargaining with foreign infrastructural firms: Jamaica in 2001......Page 348
Has the obsolescing bargain obsolesced?......Page 350
Transactional versus attitudinal relations in the twenty-first century......Page 352
Part IV Host and home government views of international business......Page 355
14 Global regulatory convergence: the case of intellectual property rights......Page 357
Introduction......Page 359
From regulatory heterogeneity to regulatory homogeneity......Page 360
Global convergence of IP laws......Page 363
Pfizer\'s role......Page 364
Infiltrating policymaking bodies worldwide......Page 367
Building coalitions, managing fault lines, and leading governments......Page 368
Exploiting US trade leverage......Page 371
Forum-switching: from WIPO to GATT......Page 372
Conclusions/hypotheses......Page 373
15 Regional multinationals and government policy: the end of global strategy and multilateralism......Page 377
Introduction......Page 379
Regional, not global, business......Page 380
Regional trade agreements......Page 381
Regional economic determinism in the Triad......Page 383
The regional multinationals......Page 386
Security and regional US energy supply......Page 390
Implications of regionalization for business–government relations......Page 392
Conclusions......Page 394
16 How will third world countries welcome foreign direct investment in the twenty-first century?......Page 397
Some historical perspective......Page 400
The socialist countries......Page 402
Ideologies......Page 404
Development strategies......Page 405
National security......Page 406
Transfers of technology......Page 407
FDI incentives......Page 408
Outlook for the twenty-first century......Page 409
17 Assessing government policies for business competitiveness in emerging market economies: an institutional approach......Page 411
Introduction......Page 413
Why are institutions important?......Page 415
The roles of government in market- and institution-building......Page 416
Institutions of economic adjustment......Page 417
Institutions strengthening economic motivation......Page 420
Institutions of private property protection......Page 423
Institutions facilitating freedom of enterprise......Page 424
Institutions of rule setting and societal guidance......Page 426
Institutions promoting competition......Page 428
Institutions promoting social equity and access to opportunity......Page 431
Conclusion......Page 433
18 Protecting foreign investors in the developing world: a shift in US policy in the 1990s?......Page 437
Weapons......Page 440
Use of weapons......Page 444
Bureaucratic politics......Page 445
Occasional support......Page 451
Pre-1990 policies......Page 453
End of the Cold War......Page 454
New institutions and new missions......Page 455
New laws......Page 458
Administration pressure......Page 459
Stronger intervention......Page 462
Extending the reach......Page 469
Developing countries\' reactions......Page 472
US values......Page 474
End of new policies?......Page 475
Conclusions......Page 479
References......Page 491
Selected publications of Jack N. Behrman on international business–government relations......Page 523
Index......Page 527