TY - JOUR
T1 - Who gets what
T2 - The MNE, the national state and the distributional effects of globalization
AU - Agmon, T.
PY - 2003/9
Y1 - 2003/9
N2 - Galization is the outcome of the interface between national states and MNEs. It is a negotiated solution rather than perfect market equilibrium. Even in a global liberalized world, national states are trying to generate as much welfare for their residents as they can, while MNEs try to maximize their value. This creates a bargaining situation. A stylized game theory model is presented and discussed, in order to gain insights into the income distributional effects of the globalization process. Two important features of the model are: (a) that there is a need for a carefully spelt out strategy, and (b) that optimal solutions depend on an ability to identify the elements of the bargaining where the opportunity cost is low. A case study of the negotiation between the State of Israel and Intel is presented as an illustration for this general model. Journal of International Business Studies (2003) 34, 416-427. doi:10.I057/ palgrave.jibs.8400041.
AB - Galization is the outcome of the interface between national states and MNEs. It is a negotiated solution rather than perfect market equilibrium. Even in a global liberalized world, national states are trying to generate as much welfare for their residents as they can, while MNEs try to maximize their value. This creates a bargaining situation. A stylized game theory model is presented and discussed, in order to gain insights into the income distributional effects of the globalization process. Two important features of the model are: (a) that there is a need for a carefully spelt out strategy, and (b) that optimal solutions depend on an ability to identify the elements of the bargaining where the opportunity cost is low. A case study of the negotiation between the State of Israel and Intel is presented as an illustration for this general model. Journal of International Business Studies (2003) 34, 416-427. doi:10.I057/ palgrave.jibs.8400041.
KW - Bargaining games with incomplete information
KW - Globalization
KW - Negotiation between a state and an mne
UR - http://www.scopus.com/inward/record.url?scp=0141976256&partnerID=8YFLogxK
U2 - 10.1057/palgrave.jibs.8400041
DO - 10.1057/palgrave.jibs.8400041
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AN - SCOPUS:0141976256
SN - 0047-2506
VL - 34
SP - 416
EP - 427
JO - Journal of International Business Studies
JF - Journal of International Business Studies
IS - 5
ER -
