Multinational production and the role of the government. With special reference to the German Centre in Singapore.
The aim of this master thesis was the provision of a theoretical foundation for a GermanCentre. The crucial question was how to approach a subject of such recent nature. Thetheory of the multinational enterprise with special emphasis on the role of the govern-mentopened up a possible solution. This unquestionably broad subject called for somerestrictions. Hence, I restricted the MNE-activities to initial market-seeking FDI whilesimultaneously confining myself to the host country and its government.The first starting point to approach a GC was the theory of the firm. It was decisivefor the subsequent discussion of MNEs to know why firms exist at all. After havingidentified some reasons for the existence of firms (e.g. market failure), the next step tookus to the question what facilitated the enormous rise of MNEs. It was shown that theprocess of globalization provided the breeding ground for the tremendous spread ofMNEs. However, the MNE is not only a child of globalization (it has been around muchlonger) but also one of the midwifes together with technological developments and (in-ter)national de-regulations. The motives for FDI revealed that market- and asset-seekingare the most important. Nevertheless, the question why MNEs exist needed yet to be an-swered.From the vast number of theoretical approaches, Dunning's 'Eclectic Paradigm'provided an interdisciplinary explanation. As a conclusion, MNEs arise through a com-binationof firm-specific assets with country-specific advantages if the firm is willing andcapable to internalize these advantages. The path to multinationality of manufacturingcompanies demonstrated the inherent problems arising from local agents and licensing.
Year of publication: |
1998
|
---|---|
Authors: | Fitz, Boris |
Publisher: |
Universität Konstanz / Fachbereich Wirtschaftswissenschaften. Fachbereich Wirtschaftswissenschaften |
Subject: | Singapur | Multinationale Produktion | Regierung | Handel |
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