The Might of the Multinationals

Drawing upon his three decades of experience as a corporate economist, including 17 years as a senior economist with Business International Corporation, Alex Rubner here offers an incisive study of the multinational corporation as its fortunes have waxed and waned over the years. The author traces the evolution of the modern multinational corporation and the popular, academic, and governmental sentiments associated with it, arguing that the transnational corporate entity is far from the all-powerful, supranational giant many have envisioned. In contrast, Rubner shows, the modern multinational is a fragile, strife-ridden business operation, often with significantly lower profit margins than smaller local or regional firms. Written for both international business scholars and lay readers interested in business matters, The Might of the Multinationals provides a compelling look at the real and imagined power of the world's largest and most well-known corporations.

Following an introductory chapter which sets the stage for the discussions that follow, the author addresses the concepts of the multinational company as formulated by idealistic advocates and vehement adversaries. Rubner shows that populist perceptions of the power of multinationals are of relatively recent vintage and derive from a variety of sources including religious and trade union leaders, politicians, businessmen, and academic theorists. The second section explores the actual day-to-day realities that govern the operation of multinationals and examines such issues as the inhospitability of host countries, the inability of large bureaucratic organizations to react quickly to changing conditions, and the hypersensitivity of multinationals. Finally, Rubner looks to the future, evaluating the revised strategies of Western multinationals regarding overseas investments. He concludes that the power of the major transnationals is diminishing--along with the legends that gave birth to that perception.