MNCs and parastatals: the future for developing countries

Article Abstract:

Multi-national corporations (MNCs) in collaborations with the parastatal corporations of developing countries (DCs) will provide technology, management, and marketing expertise in exchange for preferential market access guaranteed through state control of the legal and institutional infrastructure. MNCs, while experiencing less control and limitations to freedom of action in these arrangements, will gain the advantages of: stability; reduced tax liabilities; and increased opportunities for new business. The advantages of collaboration to the DC include: access to resources; the imposition of economically advantageous preconditions on MNCs; and minimized indigenous capital requirements. Disadvantages include: a potential negative impact on the balance of payments; limitations to domestic competition; and discouragement of indigenous private enterprise.

Research, Laws, regulations and rules, Developing countries, International relations, Industrialized countries, Government ownership, Nationalization

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Strategic alliances: the shifting boundaries between collaboration and competition

Article Abstract:

Forecasts of economic trends for the 1990s indicate that research and development costs will continue to rise, shorter product life cycles will develop, and multilateral agreements will be encouraged to deregulate important markets. These developments indicate that organizational investment will be riskier and more expensive, leading more firms to consider entering into strategic alliances (SAs) with each other. Industries which may see a large number of SAs include international law, information technology, and automobiles.

United States, Analysis, Planning, Japan, Investments, Strategic planning (Business), Industrial cooperation

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MNCs and public enterprises in developing countries

Article Abstract:

Within developing countries (DCs), a trend is developing to establish public enterprises (PEs) outside of areas traditional associated with PEs such as water and electricity. This trend is being aided by cooperation with multinational corporations (MNCs). While not always successful in the past, such cooperation will most likely continue since DCs lack the much of the technology needed to industrialize their economies.

International aspects, Industrial policy, Government business enterprises, Public enterprises

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