By Keith Cowling
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Extra resources for Transnational Monopoly Capitalism
Sample text
26 The clearest indication of this is the reasons for their existence. e. to defend against or to try to attack rivals. Their attempts at doing so are of course no guarantee of success but in general it is reasonable to rule out mistakes as exceptional and of no real consequence - for our purposes here, that is; if firms believe there is an opportunity to consolidate or improve retaliatory power, we can assume they are right. This is exactly parallel to the way firms can be said to pursue profits - they will sometimes make errors and end up making losses but generally will be success ful.
With deindustrialisation it would be no surprise to see the estimated shares of foreign enterprises falling as a result of a rise in their overseas sourcing. As it is, their shares have certainly not fallen. There are similar difficulties with the altogether more problematic UK-registered transnationals. These data are not as readily available. 3: Share offoreign enterprises in the employment of total UK manufacturing, by sector. 1975-79 (%) 1975 1977 1979 Percentage change, 1 975-79 Food, drink, tobacco Coal and petroleum products Chemicals and allied industries Metal manufacture Mechanical engineering Instrument engineering Electrical engineering Shipbuilding, marine engineering, vehicles Other metal goods Textiles Leather, leather goods, fur, clothing, footwear Bricks, pottery, glass, cement, etc.
For example in 1950 approximately a quarter of the largest 180 United States-registered trans nationals operated in over five countries but by 1975 this had risen to very nearly all. ) Another effect of multi-market contact by transnationals is that it is likely to increase their response power. The basis for this view is an idea associated with Corwin D. Edwards. He argues that when 'powerful enterprises' have reiterated con tacts with each other they will decide what to do in one market by bearing in mind their relationship elsewhere.