Are multinational corporations or states the most powerful actors in the global business environment? Illustrate your answer with reference to the AUTOMOBILE industry. In writing your answer you may find it helpful to reflect on some of the following questions (please note the essay does not require you to answer these questions, they are merely to stimulate your thinking): What are the main factors that affect the relative bargaining positions of multinational corporations and states operating in this industry? (for instance why might a state wish to attract an automobile company to its territory? Why might a multinational wish to locate in a particular country?) HINT you may find it helpful here to refer back to the diagrams in lectures 4 and 10. How would you characterize relationships between multinational corporations and states in this industry are they cooperative or antagonistic? Do they compete or cooperate? Are relationships between states and multinational corporations static or changeable? In other words, do they compete at some times and cooperate at others? Do state-owned enterprises play a prominent role in this industry? What implications does this have for the essay question?
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