Multinational corporations and Australia : the political economy of corporate-government bargaining relations

Abstract

This study seeks to identify the nature of the bargaining relationship between manufacturing multinational corporations and a host government, to assess the distributive pattern of power and authority in such a relationship and the independence of government policy-making, and to evaluate the viability of the modern State in the contemporary international system. These objectives are pursued through an examination of the Australian Government's relationship with manufacturing multinationals. Particular attention is given to the motor vehicles industry. The study advances the propositions that (1) the balance of bargaining power between manufacturing multinationals and host governments is to the advantage of the governments in the initial stages and to the advantage of the corporations in the mature stages of the relationship (2> the distribution of power and authority at each stage of the relationship reflects the respective power bases of the actors, the degree of mutual need and the international context of the relationship and (3) the viability of the modern State is not undermined by the operations of manufacturing multinationals. The research suggests that <1) the manufacturing multinationals have an initial bargaining advantage over host governments with the latter gaining the advantage as the relationship matures (2) the weight of the respective power bases, mutual need and international relations does support these dynamic bargaining positions and <3) the viability of the modern State is not compromised by the activities of manufacturing multinationals. Show more