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      ECONOMIC LIBERALIZATION: OPENNESS AND INTEGRATION — BUT WHAT KIND?

      research-article
      Prometheus
      Pluto Journals
      economic liberalization, market forces, integration, direct foreign investment
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            Abstract

            In advanced industrial economies… managerial hierarchies have gained an increasing advantage over market mechanisms or multilateral negotiations in coordinating the flow of goods, monitoring economic activities, and allocating resources… By the time the United States entered World War I management decisions had replaced coordination by market forces in many of the most critical sectors of the economy. The result might be termed managerial capitalism. (Chandler and Daems, 1980: 5, 6)

            … the decision-taking nexus of the MNE in the late 1980s has come to resemble the central nervousd system of a much larger group of interdependent but less formally governed activities, whose function is primarily to advance the global competitive strategy and position of the core organization …

            There are several implications of the new style MNEs… First they cause us to reappraise our thinking about the nature, function and boundaries of firms and markets… Second, they cast doubt on the usefulness of some of our existing classifications of our economic activities and of our traditional concepts of competition. Third, they have profoundly affected the pattern and ownership of international economic activity and the political economy of the countries which are party to it. (Dunning, 1988a: 327, 328)

            The first element of a successful industrial policy is the creative use and shaping of the market. Industrial policy fails when it overrides or ignores the market and is based upon the presumption that plans and markets are alternative means of economic coordination … The market, it has been said, is a good servant, but a bad master… effective policy towards industry depends on breaking with the plan or market dichotomy that informs conventional economic theory and is taken for granted by policy makers guided by that theory. (Best, 1990: 20)

            Content

            Author and article information

            Journal
            cpro20
            CPRO
            Prometheus
            Critical Studies in Innovation
            Pluto Journals
            0810-9028
            1470-1030
            June 1993
            : 11
            : 1
            : 30-44
            Affiliations
            Article
            8629134 Prometheus, Vol. 11, No. 1, 1993: pp. 30–44
            10.1080/08109029308629134
            b4939db5-ff5d-4cc3-bad1-907d8905a7de
            Copyright Taylor & Francis Group, LLC

            All content is freely available without charge to users or their institutions. Users are allowed to read, download, copy, distribute, print, search, or link to the full texts of the articles in this journal without asking prior permission of the publisher or the author. Articles published in the journal are distributed under a http://creativecommons.org/licenses/by/4.0/.

            History
            Page count
            Figures: 0, Tables: 0, References: 18, Pages: 15
            Categories
            Original Articles

            Computer science,Arts,Social & Behavioral Sciences,Law,History,Economics
            economic liberalization,direct foreign investment,integration,market forces

            NOTES AND REFERENCES

            1. Baster A. S.J.. 1947. . The Little Less. . , London : : Methuen.. .

            2. Berle Adolf A. and Means Gardiner C.. 1932. . The Modern Corporation and Private Property. . , New York : : Macmillan.. .

            3. Best Michael H.. 1990. . The New Competition: Institutions of Industrial Restructuring. . , Oxford : : Blackwell.. .

            4. Chandler Alfred D. and Daems Herman. . 1980. . Managerial Hierarchies. . , Cambridge , M.A : : Harvard University Press.. .

            5. Clapham J. H.. 1945. . Development of France and Germany, 1815-1914. . , Cambridge : : Cambridge University Press.. .

            6. Dunning John H.. 1988a. . “‘The New Style Internationals — Circa the Late 1980s and Early 1990s’. ”. In Explaining International Production. . , London : : Harper Collins.. .

            7. Dunning John H.. 1988b. . Multinationals, Technology and Competitiveness. . , London : : Unwin Hyman.. .

            8. Fallow, James (1991) ‘The Crucial Difference’, Times Literary Supplement (27 Sept.): 8.

            9. Mabro Robert. . 1992. . OPEC and the Price of Oil. . , Oxford : : Oxford Institute of Energy Studies.. .

            10. McVey Ruth. . 1992. . Southeast Asian Capitalists. . , Ithaca , NY : : Cornell University Press.. .

            11. Niblock T. C.. 1992. . Economic and Political Liberalisation in the Middle East. . , London : : I.B. Tauris.. .

            12. O'Brien P. K.. 1992. . Power with Profit: The State and the British Economy, 1685-1815. . , London : : Institute of Historical Research.. .

            13. Penrose E. T.. 1956. . ‘Foreign Investment and the Growth of the Firm’. . Economic Journal . , Vol. 66: June;

            14. Penrose E. T.. 1959. . The Theory of the Growth of the Firm. . , Oxford : : Blackwell.. .

            15. Shibusawa Masahide, Ahmad Zakaria Haji and Bridges Brian. . 1991. . Pacific Asia in the 1990s. . , London : : Routledge.. .

            16. Taylor Lance. . 1988. . Varieties of Stabilization Experience. . , Oxford : : Clarendon Press.. .

            17. Williamson Harold F.. 1944. . The Growth of the American Economy. . , New York : : Prentice-Hall.. .

            18. World Bank. . 1991. . The Challenge of World Development. . , Oxford and New York : : Oxford University Press for the World Bank.. .

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