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The diplomacy of multinational corporations (MNCs) : bargaining with developing states

Thesis (MA)--Stellenbosch University, 2004. / ENGLISH ABSTRACT: This assignment investigates the bargaining relationship between multinational
corporations (MNCs) and developing countries. The units of analysis of this study in
Global Political Economy are MNCs (non-state actors) and nation-states. In the
contemporary global production structure the 'balance of power' between MNCs and
developing countries has shifted in favour of MNCs. Descriptive secondary sources
were used to illustrate the MNC-State bargaining relationship in telecommunications
privatisation in Sub-Saharan Africa.
In the contemporary global economy nation-states only rarely still compete for territory,
but rather for wealth-creating activities to be located within their borders. Important
changes in the global production structure have resulted in the increased mobility and
economic power of MNCs. These developments have affected the strategic relationship
between MNCs and nation-states and the former have used their advantage to gain
preferential treatment in the bargaining process. The nation-states are also competing
amongst themselves for the investment and technology and knowledge transfers from
these firms. Privatisation programmes in Sub-Saharan Africa have substantially
increased MNC participation on the continent, which has been historically marginalised
from global foreign direct investment receipts. Research has shown that MNC
participation in infrastructure service provision is more efficient than government
ownership. However, this does not constitute a loss of sovereignty, but rather
emphasises the changing role of nation-states as facilitators of global market relations.
On examination, the distinct bargaining relationship in telecommunications privatisation
clearly illustrates the dependence of Sub-Saharan African countries on technologically
advanced MNCs. Thus, the 'balance of power' has shifted more to MNCs in the global
political economy. / AFRIKAANSE OPSOMMING: Hierdie navorsingswerkstuk ondersoek die bedingingsverhouding tussen multinasionale
korporasies (MNKs) en ontwikkelende lande. Die ondersoekeenhede in die studie van
die Globale Politieke Ekonomie is MNKs (nie-staatrolspelers) en regeringstate. In die
huidige globale produksiestruktuur het die mag tussen MNKs en ontwikkelende lande
verander sodat die MNKs nou die magsoorwig het. Beskrywende sekondêre bronne is
gebruik om die MNK-regeringstaat se bedingingsverhouding in telekommunikasie
privatisering in Sub-Sahara Afrika te illustreer.
In die teenswoordige globale ekonomie kompeteer regeringstate selde met mekaar om
territoriale mag, maar oorwegend om welvaartskeppende bedrywe binne hul grense aan
te moedig. Belangrike veranderings in die globale produksiestruktuur het MNKs se
mobiliteit en ekonomiese mag verhoog. Hierdie ontwikkelinge het die strategiese
verhouding tussen MNKs en regeringstate verander. MNKs gebruik hierdie invloed om
voordeel te trek uit regeringstate wat kompeteer vir belegging en die tegnologie- en
kennisoordrag van hierdie korporasies. Privatiseringsprogramme in Sub-Sahara Afrika
het MNK-deelname op die kontinent verhoog, wat histories gemarginaliseer is van
buitelandse direkte belegging. Navorsing dui daarop dat MNKs se deelname in
infrastruktuurdienslewering meer doeltreffend is, as wanneer dit onder staatsbeheer is.
Dit lei egter nie tot 'n verlies aan soeweriniteit nie, maar beklemtoon die regeringstaat
se veranderde rol as fasiliteerder van globale markverhoudinge. Die ondersoek na die
uitsonderlike bedingingsverhouding in die privatisering van telekommunikasie
beklemtoon Sub-Sahara Afrika se afhanklikheid van tegnologies-ontwikkelde MNKs.
Die magsbalans het gevolglik na die MNKs oorskuif in die globale politieke ekonomie.

Identiferoai:union.ndltd.org:netd.ac.za/oai:union.ndltd.org:sun/oai:scholar.sun.ac.za:10019.1/50137
Date12 1900
CreatorsVan Zyl, Stefan Daniel
ContributorsLeysens, A. J., Stellenbosch University. Faculty of Arts and Social Sciences. Dept. of Political Science.
PublisherStellenbosch : Stellenbosch University
Source SetsSouth African National ETD Portal
Languageen_ZA
Detected LanguageEnglish
TypeThesis
Format71 p. : ill.
RightsStellenbosch University

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