The Growth of Global Business

248 Pages·1993·6.062 MB·English

by  Howard Cox, Jeremy Clegg, Grazia Ietto-Gillies

ROUTLEDGE LIBRARY EDITIONS:
INTERNATIONAL BUSINESS
THE GROWTH OF GLOBAL BUSINESS
THE GROWTH OF GLOBAL BUSINESS
Edited by
HOWARD COX, JEREMY CLEGG AND
GRAZIA IETTO-GILLIES
Volume 10
Firstpublishedin1993
Thiseditionfirstpublishedin2013
byRoutledge
2ParkSquare,MiltonPark,Abingdon,Oxon,OX144RN
SimultaneouslypublishedintheUSAandCanada
byRoutledge
711ThirdAvenue,NewYork,NY10017
RoutledgeisanimprintoftheTaylor&FrancisGroup,aninformabusiness
©1993HowardCox,JeremyCleggandGraziaIetto-Gillies
Allrightsreserved.Nopartofthisbookmaybereprintedorreproducedor
utilisedinanyformorbyanyelectronic,mechanical,orothermeans,now
knownorhereafterinvented,includingphotocopyingandrecording,orinany
informationstorageorretrievalsystem,withoutpermissioninwritingfromthe
publishers.
Trademarknotice:Productorcorporatenamesmaybetrademarksorregistered
trademarks,andareusedonlyforidentificationandexplanationwithoutintent
toinfringe.
BritishLibraryCataloguinginPublicationData
AcataloguerecordforthisbookisavailablefromtheBritishLibrary
ISBN:978-0-415-63009-2(Set)
eISBN:978-0-203-07716-0(Set)
ISBN:978-0-415-63970-5(Volume10)
eISBN:978-0-203-07782-5(Volume10)
Publisher’sNote
Thepublisherhasgonetogreatlengthstoensurethequalityofthisreprintbut
pointsoutthatsomeimperfectionsintheoriginalcopiesmaybeapparent.
Disclaimer
Thepublisherhasmadeeveryefforttotracecopyrightholdersandwould
welcomecorrespondencefromthosetheyhavebeenunabletotrace.
The growth of global business
Edited by Howard Cox, Jeremy Clegg
and Grazia Ietto-Gillies
London and New York
First published 1993
by Routledge
11 New Fetter Lane, London EC4P 4EE
Simultaneously published in the USA and Canada
by Routledge
29 West 35th Street, New York, NY 10001
© 1993 Howard Cox, Jeremy Clegg and Grazia letto-Gillies
Typeset in Times by LaserScript, Mitcham, Surrey
Printed and bound in Great Britain by
Biddies Ltd, Guildford and Kings Lynn
All rights reserved. No part of this book may be reprinted or
reproduced or utilized in any form or by any electronic,
mechanical, or other means, now known or hereafter
invented, including photocopying and recording, or in any
information storage or retrieval system, without permission in
writing from the publishers.
British Library Cataloguing in Publication Data
A catalogue record for this book is available from the British Library
ISBN 0--415-09062-8
Library of Congress Cataloging in Publication Data
The Growth of global business/edited by Howard Cox, Jeremy Clegg,
and Grazia Ietto-Gillies.
p. em. - (International business series)
Includes bibliographical references and index.
ISBN 0-415-09062-8
1. International business enterprises. 2. Service industries -
International cooperation. I. Cox, Howard, 1954- . II. Clegg,
Jeremy, 1955- . III. Ietto-Gillies, Grazia, IV. Series:
International business series (London, England)
HD2755.5.G75 1993
338.8'8-de 20 93-7245
CIP
Contents
List off igures and tables vii
Notes on the contributors xi
Preface and acknowledgements xiii
Introduction
1 The growth of global business: three agendas 1
Howard Cox, Jeremy Clegg and Grazia letto-Gillies
Part I Evolutionary approaches to international business
2 Technological competence and evolving patterns of
international production 19
John Cantwell
3 British multinational banking strategies over time 38
Geoffrey Jones
4 The past, present and future of the Sago Shosha 62
Hafiz Mirza
Part II The internationalisation of service industries
5 Investigating the determinants of service sector foreign direct
investment 85
Jeremy Clegg
6 What intemationalisation in services means: the case of
accountancy in the UK and Ireland 105
Evan Davis, Gerard Hanlon and John Kay
Vl Growth of global business
7 Cross-border retailing in Europe: present status and future
prospects 119
Alan Treadgold
Part III Business in the wider Europe
8 Transnational corporations and Eastern Europe 139
Hugo Radice
9 European integration, globalisation and industrial location
in Europe 150
Julien Savary
10 European Community integration and geographical spread of
international production: the UK case 180
Grazia Ietto-Gillies
Conclusion
11 The growth of global business: implications and research
agendas for the 1990s 207
Peter J. Buckley and Stephen Young
Bibliography 220
Index 231
Figures and tables
FIGURES
1.1 The dynamics of competitive advantage 7
4.1 The core companies of the Mitsubishi Keiretsu 68
4.2 A conceptual framework for the analysis of the nature of the
firm and its relationships 76
4.3 The conceptual framework applied to 'classical' firms 77
4.4 The conceptual framework applied to Japanese firms and
strategic alliances 78
7.1 The geographic presence of Europe's speciality retailers 122
7.2 Cross-border retailer-to-retailer acquisitions in the EC, 1984
to 1992 124
7.3 Foreign direct investment in US retailing, 1980-9 125
7.4 Characteristic stages in the development of an international
retail business 128
7.5 International development: the positions of selected leading
European retailers 129
7.6 The international development of Marks & Spencer 130
7.7 Forces driving cross-border retailing in the EC 132
9.1 Mergers and acquisitions in EC industry, 1983/4 to 1989/90 151
9.2 International strategies 155
9.3 Globalisation of international production 157
9.4 Scale economies, optimal size and geographical market of the
plant 161
9.5 Plant modernisation and the necessary increase in production
volumes and market areas 162
9.6 Labour costs in clothing industries, various countries, 1990 165
9.7 Average hourly wages of medium-skilled workers at Ford
plants, 1985 166
viii Growth of global business
11.1 A general model of multinational enterprise in the global
economy 216
TABLES
3.1 Stock of international bank assets by nationality of bank,
1984 and 1990 41
3.2 Total assets of the United States offices of foreign banks in
1980, 1985 and 1988 58
4.1 The world's largest industrial and trading companies, 1992 66
4.2 The scale and relationships of Japan's Sogo Shosha, 1992 67
4.3 Development of an evolutionary model of the US
International Trade Intermediary (ITI) 74
6.1 Accountants' fees per hour, UK and Ireland, c. 1990 108
6.2 Price for serving London clients 109
6.3 Relative salaries in accountancy, UK and Ireland 110
6.4 Migration levels of Irish graduates 111
7.1 Retailers trading outside their home markets within the EC 121
7.2 Cross-border retailing in the EC 122
7.3 Cross-border collaboration in European food retailing 126
7.4 Associated Marketing Services (AMS): envisaged areas of
collaboration 127
9.1 Major mergers and acquisitions in Western Europe, 1986-92 152
9.2 Renault: main European plants, 1989 170
10.1 UK inward and outward FDI concentration ratios for five
countries: averages for 1960s and 1980s, all industries,
selected areas 186
10.2 UK largest TNCs in manufacturing and mining: total links,
five, twenty and thirty countries' concentration ratios, 1963
and 1990 187
10.3 UK largest TNCs in manufacturing and mining, network
spread of total links, 1963, 1970 and 1990 188
10.4 Concentration ratios of UK: stock of inward foreign direct
investment as a percentage of Western Europe and world
total, pre- and post-membership periods 193
10.5 UK stock of inward and outward FDI: five countries'
concentration ratios, all industries, Western Europe 193
10.6 USA and Japan outward stock of FDI into the UK as a
percentage of their total outward stock, 1971 and 1981 194
10.7 Concentration ratios of UK stock of outward direct
investment as a percentage of Western Europe and world
total, pre- and post-membership periods 196