Capital Beyond Borders: States and Firms in the Auto Industry, 1960-94 (International Political Economy Series)

Kenneth P. Thomas ; Foreword By Charles Lipson. Includes Bibliographical References (p. 168-183) And Index. This book challenges the established wisdom regarding the balance of bargaining power between multinational corporations and host governments. Most theories, beginning with Raymond Vernon's, claim that the bargaining power of host states should increase over time. This work shows the opposite is true, at least for the automobile industry in the industrialized world. The reason for this is the growing mobility of production, which undercuts host states' bargaining positions. Capital mobility is thus central to both firm-state relations and IPE generally. In particular, the rising mobility of capital threatens governments' ability to regulate firms and the economy, and has contributed to a shift of income toward the corporate sector. This has been expressed also in terms of declining real wages in the US and rising unemployment in Europe KMBT25020110325150204......Page p0001.djvu KMBT25020110325150510......Page p0030.djvu KMBT25020110325150752......Page p0055.djvu KMBT25020110325151029......Page p0078.djvu KMBT25020110325151216......Page p0095.djvu