A Strong Bargaining Position

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A Strong Bargaining Position

Nothing puts a multinational corporation in such bad odour as the use of this threat.

It's a great way to lose friends.

Even if the Ford Motor Company threatens to leave England, as it did not long ago, it will still want to sell automobiles in England.

And, of course, it can only leave once.

Doesn't the multinational contribute to protectionist attitudes? Because of this fear of cheaper production with cheaper labour in other countries? On balance, we would judge multinationalism to be a force against tariffs.

You don't need them if you own the foreign competitor.

But also for the big firm producing in many countries tariffs are a nuisance.

We've always thought the EEC-the Common Market - came into existence not because of a sudden burst of free-trade enlightenment but because the big multinational corporations had reached the point where internal trade barriers within Europe were a real handicap in doing business.

As a matter of fact, the multinational corporation not only works against tariffs but also, quite possibly, against more serious forms of international conflict.

In the last century international tension was of real advantage to the great and mainly national corporations, those, for example, in mining and heavy industry in France and Germany.

Tension produced orders for guns, steel and coal and was altogether good for business.

So there was at least a temptation to stir up trouble or welcome it when it came along.

Once a corporation begins operating in a highly visible way across international frontiers, it can no longer play that game.

Or even be suspected of doing so.

Learn More About Capital Needs

Threats To Government Sovereignty

All corporations are.

That is the real, important and almost completely neglected point we have seen that the modern large corporation needs a great many things from the government, and gets them.

In getting them, it invades the sovereignty of the government.

The large national corporation makes just as heavy an assault on national sovereignty as the large multinational firth does.

The large American firm accommodates Washington to its needs.

The large French firm persuades the French government in the same way.

And soft is in Britain, Germany, Sweden or wherever.Threats To Government Sovereignty

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