By Michel Ghertman, Margaret Allen (auth.)
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0 ;::s :::: ..... ~ (';) s. 0 ;::s ::l". 0 :::: (") >:l... 4 SOURCE Penetration of multinational enterprises in manufacturing industry in member countries: statistics updated at the end of 1978. OECD, 1979, Table 2a, p. 4. NOTES a. Figures from Table 4, p. 30, in Ned G. Howenstine, 'Gross Product of US Affiliates of Foreign Companies', Survey of Current Business (January 1979). b. Figures of the share of companies with foreign capital in the manufacturing sector in the United Kingdom from Table 2b, p.
1). Several factors explain this evolution: firstly, the increase in the cost of labour in Europe and Japan; secondly, the decline of the dollar until 1980, especially in relation to the German Deutsche Mark, the Swiss Franc and the Dutch Guilder; and lastly, the relative decline of the American technological advantage over other countries. Japan is a country which has been traditionally closed to foreign investment since it refused for a long time, and still avoids majority foreign holdings in its firms, even though recently it has relaxed its rules in this area.
2. gives some idea of this. 3 per cent for Japan. 2 per cent for Japan. 7 per cent of employees are employed by multinationals. 2 per cent. 3 Multinationals and home country The word 'multinational' is linked to the image of a foreign enterprise. In the United Kingdom one thinks of Ford or Michelin as multinationals rather than BL or Boots. The latter two firms are, however, much more important for the British economy than the North American and the French giants mentioned. 1). These are good examples of the importance of the multinationals for the economies of their home countries.
An Introduction to the Multinationals by Michel Ghertman, Margaret Allen (auth.)