Capital Beyond Borders: States and Firms in the Auto Industry, 1960-94

Thomas (political science and international studies, U. of Missouri-St. Louis) challenges the established notion that in negotiations between multinational corporations and host governments, the bargaining power should tip over time to the advantage of the nation state. Pointing to the automobile industry, he argues that the opposite is true, and attributes the fact to the growing mobility of production. He concludes that the increasing mobility of capital threatens the government’s ability to regulate firms, contributes to a shift of income toward corporations, and has resulted in falling real wages in the US and rising unemployment in Europe. Annotation c. by Book News, Inc., Portland, Or.