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The Social results of FDI on Multinational businesses and household organizations compares and contrasts wages, operating stipulations and business kin tactics in multinational and family businesses. This ebook is an attempt to map the social results of FDI in a few european member states, with regards to the existing styles of internationalization.

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Additional info for Multinational Companies and Domestic Firms in Europe: Comparing Wages, Working Conditions and Industrial Relations

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With this book we hope to present a different view of the impact of MNEs from the usual presentations which have tended to focus on the value of FDI stocks. Other indications of MNE activity in a country, in particular employment levels in foreign affiliates, in our view, need to be incorporated. In Chapters 3 to 7 we detail FDI-related employment by country and industry. After providing this basic context to help situate ‘our’ countries in the FDI and globalization spectrum, we start this chapter by outlining the various forms, motives and approaches of the expansion of MNEs.

2006, 504). On the other hand, based on data for nine Western European countries over the period 1990–2004, Crinò (2008) found that service offshoring exerted positive and robust effects on domestic productivity: a result that does not seem to match with considerable replacement effects – unless, of course, direct employment losses in the home country from relocation are larger than employment gains from productivity increases. Jensen and Kletzer (2007, 2008) and the famous economist Alan Blinder (2005, 2006, 2009) followed another path, and examined systematically the ‘offshorability’ of US occupations, or the ability to perform one’s work duties (for the same employer and customers) from abroad.

The authors suggested that such workers may be more worried as they have more to lose in terms of firm- or industry-specific human capital. These findings were by and large supported by more recent evidence, summarized by Milberg and Winkler (2011), though they emphasized that worker vulnerability does not translate directly into economic insecurity. These authors concluded that popular resistance to globalization reflected in surveys is not based on misinformation or irrationality and that it can be mitigated by protective labour market policies.

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