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Birth of the Multinational
International Business Review 9 (2000) 771–775 www.elsevier.com/locate/ibusrev
Book reviews Birth of the Multinational Karl Moore and David Lewis; Copenhagen Business School Press, Copenhagen, 1999, pp. 341, ISBN 87-16-13468-0 The business organizational phenomenon known as the multinational corporation in the 1960s and the early 1970s came to be referred to as the multinational enterprise in the mid-1970s and thereafter. Is it a twentieth-century phenomenon? Before what Moore and Lewis have to say in their extensively-documented volume, some authors with limited focus on history wrote: The emergence of the multinational has been a signal development of the postwar era1; Multinationals flourished because, after World War II, the major developed countries led by the United States established a framework for the world economy that encouraged the free flow of goods and private capital between countries on market principles2; a multinational becomes a medium of intercultural interaction-in effect, an exchange agent3; today’s multinational is a logical outcome of widening markets overseas, improved managerial techniques and postwar cooperation4; the phenomenon of multinational business is neither purely American nor particularly new5. Authors such as Behrman6, and Hays, Korth and Roudiani7, included the trading activities of renowned companies such as the British East India Company and the Hudson Bay Company, and suggested that the multinational has its roots far back in the history. How far back? We now know that, in its rudimentary form, the multinational can be traced back to 2000 B.C. As the jacket notes, Birth of the Multinational begins with the history of the (now) first known multinational in the Assyrian empire, and traces the rise and fall of the multinationals from Ashur to Augustus. Several international business scholars who had seen the earlier manuscript version
1
Neil H. Jacoby, “The multinational corporation,” The Center Magazine, May 1970. Stephen Hymer, in a written statement to the Group of Eminent Persons, United Nations, 1973. 3 Hans Thorelli, “The multinational corporation as a change agent,” Southern Journal of Business, July 1966. 4 Harry G. Johnson, “The multinational corporation as a developing agent,” Columbia Journal of World Business, May-June 1970. 5 Prasad, S.B. and Shetty, Y.K., An introduction to multinational management, Englewood Cliffs, NJ: Prentice Hall, 1976. 6 Behrman, J.N. Some patterns of the rise of the multinational enterprise. Chapel Hill: University of North Carolina Press, 1969. 7 Hays, R., Korth, C.M., and Roudiani, M., International business: An introduction to the world of multinational business. Englewood Cliffs, NJ: Prentice Hall, 1972. 2
772
Book reviews / International Business Review 9 (2000) 771–775
of the book have lauded and praised the seminal work in more than one way — a must read, definitive answer to query about the origin of the multinational, containing fascinating insights and valuable source material, and opening up a novel line of inquiry into the relevance of history for the modern multinational enterprise. Nothing more need be added, except to say that it is a beautifully produced volume containing some sixty pages of bibliography, chapter notes, and a comprehensive index. This book ought to be read and re-read. It belongs in the personal libraries of all who write about multinational financial and industrial enterprises. S. Benjamin Prasad Co-author of The Frightening Angels: Multinationals in Developing Countries (1975) Central Michigan University Mount Pleasant, MI 48859, USA 13 July 2000 PII: S 0 9 6 9 - 5 9 3 1 ( 0 0 ) 0 0 0 3 1 - 7
International Banking Crises: Large-Scale Failures, Massive Governmental Interventions Benton E. Gup (Ed.); Quorum Books: Westport, Connecticut, 1999, pp. 286, ISBN 1-56720-283-7 The term “bank” is derived from the Italian word banco or counter. Banks have been public or private credit institutions. Banking, as one of the specialized forms of commerce, appeared in conjunctions with the civilizations of the distant past. As it was then, writes Orsingher (1967), “Today in all countries of the world, banks are more than ever essential to the economy, finance, currency, commerce. Whether it be in Paris, London, Tokyo, Moscow or Peking, public and private banks are helped by the respective governments” (p. ix). The book, under review, addresses the crisis in banking1 in several countries and many continents. It is a comprehensive examination of the causes and effects of bank failures worldwide. The broad and complex topic is covered in fifteen chapters—each a separate article Benton Gup and his panel of co-authors offer answers to the many questions about the severity and contagion of bank failures in many regions, and also what can be done to prevent these panics in the future. The book holds the attention of the reader, due both to its style and to the nature of the crises under 1
The term ‘international banking crisis’ can be differentiated from ‘international financial crisis’ or panics. There is rich historical literature on the latter; for a current view of the best known global hedgefund manager, see Soros (1999).
Book reviews Birth of the Multinational Karl Moore and David Lewis; Copenhagen Business School Press, Copenhagen, 1999, pp. 341, ISBN 87-16-13468-0 The business organizational phenomenon known as the multinational corporation in the 1960s and the early 1970s came to be referred to as the multinational enterprise in the mid-1970s and thereafter. Is it a twentieth-century phenomenon? Before what Moore and Lewis have to say in their extensively-documented volume, some authors with limited focus on history wrote: The emergence of the multinational has been a signal development of the postwar era1; Multinationals flourished because, after World War II, the major developed countries led by the United States established a framework for the world economy that encouraged the free flow of goods and private capital between countries on market principles2; a multinational becomes a medium of intercultural interaction-in effect, an exchange agent3; today’s multinational is a logical outcome of widening markets overseas, improved managerial techniques and postwar cooperation4; the phenomenon of multinational business is neither purely American nor particularly new5. Authors such as Behrman6, and Hays, Korth and Roudiani7, included the trading activities of renowned companies such as the British East India Company and the Hudson Bay Company, and suggested that the multinational has its roots far back in the history. How far back? We now know that, in its rudimentary form, the multinational can be traced back to 2000 B.C. As the jacket notes, Birth of the Multinational begins with the history of the (now) first known multinational in the Assyrian empire, and traces the rise and fall of the multinationals from Ashur to Augustus. Several international business scholars who had seen the earlier manuscript version
1
Neil H. Jacoby, “The multinational corporation,” The Center Magazine, May 1970. Stephen Hymer, in a written statement to the Group of Eminent Persons, United Nations, 1973. 3 Hans Thorelli, “The multinational corporation as a change agent,” Southern Journal of Business, July 1966. 4 Harry G. Johnson, “The multinational corporation as a developing agent,” Columbia Journal of World Business, May-June 1970. 5 Prasad, S.B. and Shetty, Y.K., An introduction to multinational management, Englewood Cliffs, NJ: Prentice Hall, 1976. 6 Behrman, J.N. Some patterns of the rise of the multinational enterprise. Chapel Hill: University of North Carolina Press, 1969. 7 Hays, R., Korth, C.M., and Roudiani, M., International business: An introduction to the world of multinational business. Englewood Cliffs, NJ: Prentice Hall, 1972. 2
772
Book reviews / International Business Review 9 (2000) 771–775
of the book have lauded and praised the seminal work in more than one way — a must read, definitive answer to query about the origin of the multinational, containing fascinating insights and valuable source material, and opening up a novel line of inquiry into the relevance of history for the modern multinational enterprise. Nothing more need be added, except to say that it is a beautifully produced volume containing some sixty pages of bibliography, chapter notes, and a comprehensive index. This book ought to be read and re-read. It belongs in the personal libraries of all who write about multinational financial and industrial enterprises. S. Benjamin Prasad Co-author of The Frightening Angels: Multinationals in Developing Countries (1975) Central Michigan University Mount Pleasant, MI 48859, USA 13 July 2000 PII: S 0 9 6 9 - 5 9 3 1 ( 0 0 ) 0 0 0 3 1 - 7
International Banking Crises: Large-Scale Failures, Massive Governmental Interventions Benton E. Gup (Ed.); Quorum Books: Westport, Connecticut, 1999, pp. 286, ISBN 1-56720-283-7 The term “bank” is derived from the Italian word banco or counter. Banks have been public or private credit institutions. Banking, as one of the specialized forms of commerce, appeared in conjunctions with the civilizations of the distant past. As it was then, writes Orsingher (1967), “Today in all countries of the world, banks are more than ever essential to the economy, finance, currency, commerce. Whether it be in Paris, London, Tokyo, Moscow or Peking, public and private banks are helped by the respective governments” (p. ix). The book, under review, addresses the crisis in banking1 in several countries and many continents. It is a comprehensive examination of the causes and effects of bank failures worldwide. The broad and complex topic is covered in fifteen chapters—each a separate article Benton Gup and his panel of co-authors offer answers to the many questions about the severity and contagion of bank failures in many regions, and also what can be done to prevent these panics in the future. The book holds the attention of the reader, due both to its style and to the nature of the crises under 1
The term ‘international banking crisis’ can be differentiated from ‘international financial crisis’ or panics. There is rich historical literature on the latter; for a current view of the best known global hedgefund manager, see Soros (1999).