A Secret Country by John Pilger

By John Pilger

Expatriate journalist and film-maker John Pilger writes approximately his place of birth with life-long affection and a passionately severe eye. during this absolutely up to date version of A mystery nation, he can pay tribute to a bit identified Australia and tells a narrative of excessive political drama.

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Hymer also pointed to two important implications of the presence of oligopolistic elements in international production. The first implication is associated with the indeterminacy of international operations. The second implication is policy oriented, whereby host governments can increase their bargaining power and tax the higher than opportunity costs return of firms without affecting their behaviour. LIMITATIONS OF THE HYMER THEORY OF DIRECT INVESTMENT: THE VIEW OF ALTERNATIVE THEORIES OF THE GROWTH OF THE MNE The oligopolistic theory of the firm adopted by Hymer which allows for active firms and interactive processes in which the conduct of firms determines the market structure is distinct from the theory of monopolistic competition adopted by later theorists more entrenched in the industrial organisation tradition, based on a structure-conduct-performance model.

In any case, collusion between MNEs is generally undertaken to improve the relationship between international production networks rather than being an explanation of their existence and growth (Cantwell, 1991b). This theory was applied in the work of Hymer and Rowthorn (1970), Sanna Randaccio (1980) and more recently by Cowling and Sugden (1987) who argued that monopolisation and collusion are important means by which firms attain profitability and security. However, Graham (1975, 1985) argues that although collusive agreements and cartels were an important means of achieving industrial stability and avoiding price warfare in world markets in the period prior to 1914, exchange of threats or intra-industry production by MNEs in the major markets of their rival firms became more typical of the strategy adopted by firms in the period from 1960 as a means of attaining security.

The analysis therefore shifted from the neoclassical trade and investment theory and focused on the unique features of FDI as a modality within which MNEs maintain control over non-financial and ownership-specific intangible assets. The distinctive contribution of Hymer over the neoclassical trade and investment theory is in considering the MNE as an institution for international production rather than international exchange. The element of control over the use of assets transferred abroad is considered important by the MNE for three reasons.

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