Multinational Firms: The Global-Local Dilemma

Multinational Firms: The Global-Local Dilemma

Multinational Firms: The Global-Local Dilemma

Multinational Firms: The Global-Local Dilemma


At the turn of the century, questions about multinational firms' strategies as regards the forces of globalisation and of the regional and local dimensions are very much to the fore. This work examines issues concerning these topics.


This book is the second volume containing articles that were presented at the Seventh Sorbonne International Conference on Multinational Firms' Strategies in Paris. The main subject of these chapters deals with the multinational firms' strategies in a complex and global environment especially in terms of location decisions. Understanding these decisional processes are very important in many aspects: for authorities concerned by their promotion policies, for competitors already settled in an area, or for their own organization etc.

Nevertheless, the main difficulty is that their strategies are neither unique nor simple, they are increasingly complex and respond to different logic and individual choices. Several possible alternatives can appear and also strong reaction can be induced by wrong policies or/and strategies.

The phenomenon of globalization is not recent, however nowadays most multinational firms seem to be adopting a global strategy. In fact, do we have to speak of 'globalization' for most multinationals firms or are 'regional' strategies more appropriate to explain their behavior? Even if the global dimension generally is crucial, do firms react at a more disaggregated level? Are they not compelled to include the regional level in their choices? Since the 1980s, some geographic economic areas have been created: the EU, MERCOSUR, ASEAN, NAFTA etc. and a real movement of regional integration has followed, which modifies the firms' strategies.

To highlight the main features of the MNE decisions, this volume is divided in three parts which are directly linked in the globalization and location process: Globalization: where do we stand? Globalization and regional integration, and the location strategies.

Globalization: where do we stand?

In the first chapter of this part, Alan M. Rugman tries to explain the main role and strategies of these international business enterprises in the actual environment,

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