By Michel Ghertman, Margaret Allen (auth.)
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Additional resources for An Introduction to the 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. Before they established subsidiaries abroad, they were carrying on activities only in their own country.
The goal for 1985 was around 28 miles per gallon. American companies were therefore obliged to build smaller, lighter cars- the same type of cars that the Europeans and the Japanese had been making for years. This led to progressive standardization of car models with important repercussions on the worldwide organization of production. For economic reasons, a certain component (for example, gearboxes) could now be manufactured in only one country rather than in several, and supply the whole world market.
This attitude, however, did not always ensure safety and survival. Several years before, during the Spanish Civil War, the manager of the General Motors' subsidiary had been working peaceably with the Republican Government. The day in 1936 when Franco came to power everything changed. The 28 An Introduction to the Multinationals immediate reaction was brutal: the manager found himself in jail. Because of this, relations between the multinational in question and Franco's Government were impaired for a long time.
An Introduction to the Multinationals by Michel Ghertman, Margaret Allen (auth.)