Abstract
Abstract. Satisfactory and mutually beneficial relationships between multinational corporations and individual nation-states are sustainable as long as their perceived shared interests exceed any conflicts of interest. However, when events, or actions intentionally taken by either side or dictated by circumstances, alter an acceptable balance between the shared- and conflicts of interest, a good business relationship can deteriorate fast to the detriment of one or both sides. Thus, shared-interests cannot be assumed to continue over the long-range without consistent efforts by both sides to maintain them and, in the meantime, keep conflicts of interest within a tolerable level. This paper explores the factors that contribute to sustaining shared interests and containing conflicts of interest between multinational corporations and nation-states in order to avoid a deteriorations or possible disruption of an otherwise mutually beneficial relationship. Of the questions to be addressed are: what strategies and actions can help in strengthening the shared interests, and what actions and policy changes contribute to an increase in the conflicts of interest between nation-states and multinational corporations?
Keywords. Multinational corporations, Joint interests, Conflict of interest, Host countries, Transfer prices, Profit shifting, Transfer-pricing, Earning stripping.
JEL. F23, G18, G38.
References
Backer, L.A. (2011). Private actors and public governance beyond the state: The multinational corporation, the financial stability board, and the global governance order. Indiana Journal of Global Legal Studies, 18(2), 751-802. doi. 10.2139/ssrn.1658730
Bateman, T. Snell, C., & Komopaske, R. (2017). Management: Leading & Collaborating in a Competitive World. 12th Edition. McGraw-Hill Book Company.
Bouquet, C., & Birkinshaw, J. (2008). Managing power in the multinational corporation: How low-power actors gain influence. Journal of Management, 34, 477-508. doi. 10.1177/0149206308316062
Forrow, B.D. (1972). The multinational corporation in the Enlarged European community. Law and Contemporary Problems Journal, 37(2), 306-317.
Ghemawat, P. (2007). Redefining Global Strategy. Redefining Borders in a World Where Differences Still Matter. Harvard Business School Press.
Ghoshal, S., & Bartlett, A. (1990). The multinational corporation as an international network. Academy of Management Review, 15(4), 603-625. doi. 10.5465/AMR.1990.4310825
Gravelle, J.G. (2015). Tax havens: International tax avoidance and evasion. Congressional Research Service, 1-21. [Retrieved from].
Hill, C. (2004). Global Business Today. 3rd Edition. McGraw-Hill/Irwin.
Hill, C., & Hult, G.I. (2011). International Business: Competing in the Global Marketplace. 11th Edition. McGraw-Hill Education.
Ku, J., & Yoo, L. (2013). Globalization and sovereignty. Berkeley Journal of International Law, 31(1), 218-234. doi. 10.15779/Z38T076
Moye, J. (2013). Twenty Years Later: A Look Back at Coke’s Dramatic 1993 Return to India, 1-6. [Retrieved from].
Nye, J.S. (1974). Multinationals: The game and the rules. Foreign Affairs, 1-15.
Rubin, S.J. (1975). Transnational corporations: Supervision, regulation, or what? Maryland Journal of International Law, 1(1), 1-27.
Shapiro, A.C. (1991). Foundations of Multinational Financial Management. Allyn and Bacon.
Stiglitz, J. (2007). Regulating multinational companies. American University International Law Review, 23(3), 451-484.
The Stateless Corporation, Cover Story (1990). Business Week, 98-106.
Todaro, M. & Smith, S. (2009). Economic Development. 10th Edition. Pearson/Addison Wesley.
Weidenbaum, M.L. (2004). Business and Government in the Global Marketplace. 7th Edition. Pearson/Prentice Hall.
