Chapter 9 The multinational enterprise
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Exports are not the only way to penetrate a foreign market. Capital as well as labour can relocate. Multinationals, often as part of a supply chain, produce abroad to take advantage of less expensive labour, state support or local raw materials. As executives and shareholders are transnational, it is increasingly difficult to determine the homeland of the company. Multinationals bring in plant, intangible know-how and marketing strategies. Governments should attract them but should also redirect their autonomy in line with the national interest.

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