Paul N. Doremus is Senior Analyst (Technology Administration) in the U.S. Department of Commerce. William W. Keller is Executive Director, Center for International Studies, Massachusetts Institute of Technology. He is the author of The Liberals and J. Edgar Hoover: Rise and Fall of a Domestic Intelligence State (Princeton). Louis W. Pauly is Professor of Political Science and Director, Center for International Studies, University of Toronto. He is the author of Who Elected the Bankers? Surveillance and Control in the World Economy. Simon Reich is Professor of Public and International Affairs, University of Pittsburgh. He is coauthor of The German Predicament: Memory and Power in the New Europe.

"When it comes to corporate behavior, the authors show convincingly that nationality is destiny. This is a timely and brave book."--Bruce Kogut, Harvard Business Review "This book provides excellent background reading for anyone interested in multinational corporate finance and investments."--Library Journal "This work is concisely yet lucidly presented... Recommended for all those interested in the global economy."--Choice

• LIST OF TABLES AND FIGURES ix PREFACE xi CHAPTER 1 National Firms in Global Commerce 3 The Appearance of Convergence 4 Innovation and the State 6 Domestic Structures, Multinational Corporate Strategies 7 Overview of the Book 10 CHAPTER 2 States and Firms: Conventional Images, Complex Realities 11 The Nature of MNCs 11 Global-Local Politics 14 The Policy Context 18 CHAPTER 3 National Foundations of Multinational Corporate Activity (I) 22 Corporate Governance and Finance 22 Comparative Analysis of the United States, Germany and Japan, 24 CHAPTER 4 National Foundations of Multinational Corporate Activity (II) 59 Innovation Systems 60 Investment Systems 74 Structural Context and Multinational Corporate Behavior 83 CHAPTER 5 The Strategic Behavior of MNCs 84 Technology and Commerce 84 Direct Investment and Intrafirm Trade 115 Interaction of Corporate Investment, Trade, and Innovation 133 CHAPTER 6 Corporate Diversity and Public Policy 138 Globalization at Bay 138 The Politics of Deepening Economic Integration 142 Public Policy and Increasing Complexity 144 NOTES 151 SELECTED BIBLIOGRAPHY 183 INDEX 189

Paul N. Doremus is Senior Analyst (Technology Administration) in the U.S. Department of Commerce. William W. Keller is Executive Director, Center for International Studies, Massachusetts Institute of Technology. He is the author of The Liberals and J. Edgar Hoover: Rise and Fall of a Domestic Intelligence State (Princeton). Louis W. Pauly is Professor of Political Science and Director, Center for International Studies, University of Toronto. He is the author of Who Elected the Bankers? Surveillance and Control in the World Economy. Simon Reich is Professor of Public and International Affairs, University of Pittsburgh. He is coauthor of The German Predicament: Memory and Power in the New Europe.

"When it comes to corporate behavior, the authors show convincingly that nationality is destiny. This is a timely and brave book."--Bruce Kogut, Harvard Business Review "This book provides excellent background reading for anyone interested in multinational corporate finance and investments."--Library Journal "This work is concisely yet lucidly presented... Recommended for all those interested in the global economy."--Choice

• LIST OF TABLES AND FIGURES ix PREFACE xi CHAPTER 1 National Firms in Global Commerce 3 The Appearance of Convergence 4 Innovation and the State 6 Domestic Structures, Multinational Corporate Strategies 7 Overview of the Book 10 CHAPTER 2 States and Firms: Conventional Images, Complex Realities 11 The Nature of MNCs 11 Global-Local Politics 14 The Policy Context 18 CHAPTER 3 National Foundations of Multinational Corporate Activity (I) 22 Corporate Governance and Finance 22 Comparative Analysis of the United States, Germany and Japan, 24 CHAPTER 4 National Foundations of Multinational Corporate Activity (II) 59 Innovation Systems 60 Investment Systems 74 Structural Context and Multinational Corporate Behavior 83 CHAPTER 5 The Strategic Behavior of MNCs 84 Technology and Commerce 84 Direct Investment and Intrafirm Trade 115 Interaction of Corporate Investment, Trade, and Innovation 133 CHAPTER 6 Corporate Diversity and Public Policy 138 Globalization at Bay 138 The Politics of Deepening Economic Integration 142 Public Policy and Increasing Complexity 144 NOTES 151 SELECTED BIBLIOGRAPHY 183 INDEX 189