Cover image for Global engagement : how American companies really compete in the global economy
Global engagement : how American companies really compete in the global economy
Quinlan, Joseph P.
Personal Author:
Publication Information:
Lincolnwood, Ill. : Contemporary Books, [2001]

Physical Description:
xix, 267 pages ; 24 cm
Format :


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HG4538 .Q563 2001 Adult Non-Fiction Non-Fiction Area

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In "Global Engagement , a noted economist and specialist on global multinationals discusses how most investors and policy makers don't understand how U.S. companies operate and compete in the world economy today. Trade and exports are the most popular forms of global engagement, but, as this book makes clear, foreign direct investment and the strategic utilization of foreign affiliates are the primary means by which U.S. firms compete in world markets. Successful U.S. global leaders are "insiders" in various markets around the world and do far more than serve foreign markets via exports. Only through understanding this more accurate "global engagement" will people have a true understanding of the global economy and today's business opportunities.

Reviews 1

Booklist Review

Quinlan, an international economist with Morgan Stanley Dean Witter, warns that too many investors and policymakers focus exclusively on trade and the balance of payments when they consider the global economy. Instead, he suggests that American firms compete more "by establishing a local presence in various foreign markets and being on the ground" than through the cross-border exchange of goods. Consequently, the real measure of U.S. participation in the world marketplace should include the combined total output of U.S. foreign affiliates. Using a plethora of charts and statistics, Quinlan shows that the "extraterritorial span of corporate America is unsurpassed. . . ." He examines the trends that influence global foreign direct-investment flows, analyzes in detail U.S. inflows and outflows since World War II, looks specifically at the commercial rivalry between the U.S. and Japan, tracks the increasing globalization of service industries, and reports on U.S. investment ties with developing nations. --David Rouse

Table of Contents

Acknowledgmentsp. IX
Introductionp. XI
Key Terms and Definitionsp. XVII
Part I Setting the Global Stagep. 1
1 The Global Economy at the Dawn of a New Centuryp. 5
The Beat Goes Onp. 7
The Global Economy: The Long Viewp. 9
Globalization Part II: Forces of Changep. 13
The United States and the Illusion of Being an Islandp. 17
2 Why Firms Invest Abroad: Understanding the Dynamics of Foreign Direct Investmentp. 21
What Motivates Firms to Invest Overseas?p. 22
Some Theories on Foreign Investmentp. 27
The Urge to Mergep. 33
My Enemy's Enemy Is My Friend: The Rise of Alliance Capitalismp. 37
Foreign Direct Investment and Trade: The Interlinkagesp. 41
3 Beyond Trade: Transnationals and Global Foreign Direct Investment Trendsp. 45
The Making of a Transnationalp. 46
The Transnational Profilep. 48
The Global Boom in Foreign Direct Investmentp. 50
Sources of Global FDI Outflowsp. 51
Japan Goes Globalp. 52
Europe Steps Upp. 53
New and Emerging Transnationalsp. 55
Global FDI Inflows: A Larger Claim for the Developing Nations ... Even in Times of Crisisp. 59
Asia: Transnationals Make the Most of the Crisisp. 61
Latin America: A Refurbished Image Equals More Capital Inflowsp. 63
Central Europe and Russia: In from the Coldp. 67
Africa: Lots of Potential but Still on the Marginp. 68
The Chosen Few: Investment Flows to the Developing Nationsp. 70
The Sectoral Shift in Global Foreign Direct Investmentp. 73
Part II U.S. Global Engagement Through Foreign Direct Investmentp. 75
4 Global Linkages Through U.S. Foreign Direct Investmentp. 79
Global Linkages: Trade Tells Just One Part of the Storyp. 80
Asian Aftershocksp. 82
Global Linkages Part II: Foreign Investment and the Ties That Really Bindp. 84
U.S. Foreign Direct Investment: A Historical Perspectivep. 85
The 1950-1979 Cycle: Europe Beckonsp. 86
The Investment Boom Goes Bust in the Early 1980sp. 90
The Booming 1990sp. 92
The NAFTA Surprisep. 94
In Asia, Smaller Is Betterp. 96
In-Country Sales of Affiliates: The Best Measure of Global Engagementp. 98
Revisiting the Asian Crisisp. 101
5 On the Front Lines: The Strategic Role of U.S. Foreign Affiliatesp. 103
Affiliates: Neither Outliers nor Outlawsp. 104
When Parents Become Affiliatesp. 105
U.S. Foreign Affiliates: A Lot Like Californiap. 106
Dissecting the Functions of U.S. Foreign Affiliatesp. 107
The Bottom Line: So, Where Do Global Profits Come From?p. 115
The Different Modes of Foreign Direct Investmentp. 118
The Strategic Mandate of Affiliates: It All Dependsp. 120
The Big Picture: Perspectives on U.S. Parentsp. 125
6 Who Are Us? Foreign Investment and Foreign Affiliates in the United Statesp. 129
1950-1975: Asymmetrical Investment Flowsp. 130
The Mid-'70s and the Beginning of Something Bigp. 131
The Pendulum Swings in the 1980sp. 132
Japan: Better Late than Neverp. 135
"The Selling of America": The Backlash Comes but Quickly Goesp. 137
Inflows in the 1990s: Weak Start, Robust Finishp. 138
The "Old World" Invasionp. 139
The Foreign Direct Position in the United States as a New Century Dawnsp. 142
Affiliate Activities in the United Statesp. 146
The Outsized Impact on U.S. Tradep. 149
Beyond Imports: The Sales of Foreign Affiliates in the United Statesp. 151
America: Some Implications as Host to the Worldp. 154
Part III Unique Dimensions of U.S. Global Engagementp. 157
7 Japan: Always the Exceptionp. 161
U.S.-Japan Foreign Direct Investment Linkages: The Long Viewp. 163
Bilateral Investment Flows from 1950 to 1979--Advantage: The United Statesp. 165
Bilateral Investment Flows in the 1980s--Advantage: Japanp. 168
Profiling Japan's Investment Advantagep. 171
Japan's Stranglehold on U.S. Tradep. 173
The "Lost Decade": Reality Overcomes Resistancep. 177
"Open the Market and They Will Come"p. 180
Toward a Level Playing Fieldp. 184
8 Services: The New Dynamic of U.S. Global Engagementp. 187
The Globalization of Servicesp. 188
Technology and the "Death of Distance"p. 190
U.S. Trade in Global Servicesp. 192
U.S. Foreign Direct Investment in Global Servicesp. 196
The Service Activities of Global U.S. Manufacturersp. 200
Sales of U.S. Foreign Affiliates: The Preferred Mode for Delivery of Servicesp. 203
9 Unfinished Business: U.S. Global Engagement with the Developing Nationsp. 205
The "Triad" Plus Onep. 207
Some Perspectives on U.S. Foreign Investment in the Developing Nationsp. 210
Top 10 Destinations Among the Developing Nationsp. 215
Meeting the Microchallengesp. 224
Regional Spheres of Influencep. 228
Trade Versus Investment: Taking Stock of U.S. Global Engagement with the Developing Nationsp. 231
Epiloguep. 235
Notesp. 239
Bibliographyp. 253
Indexp. 261