international risk and perceived environmental uncertainty the dimensionality and internal consistency of miller s measure increasingly scholars have suggested that there is a need to approach the problem of international risk from a multidimensional perspective brouthers 1995 miller 1993 shan 1991 miller 1992 1993 developed and tested the most comprehensive framework to date miller 1993 showed high inter rater reliability in his measure of perceived environmental uncertainty peu in this paper we test the dimensionality of the scales from a statistical viewpoint and find that the statistical determination is reasonably consistent with miller s conceptual determination we also investigate miller s measure by comparing scales conceptualized by miller with ones determined by factor analysis we test the reliability of these scales and find that the conceptualized scales have generally high internal consistency in samples of both manufacturing and service firms however the findings also suggest that several changes in the peu measure are warranted resulting in a refinement of miller s measure which we have labeled peu 2

industry and country effects on managers perceptions of environmental uncertainties international management research highlights political government policy and macroeconomic uncertainties strategy studies focus on input supply product market and competitive uncertainties this study develops and tests the reliability of an instrument for measuring managers uncertainly perceptions data analyses using an international sample provide insights into the relative importance of country and industry factors for explaining managers perceptions of different environmental uncertainties

price leadership and welfare losses in u s manufacturing comment do economists have to worry about the efficiency losses of imperfect competition textbooks especially tend to conclude that the answer is negative the truth is however that the relevant literature can be divided in two opposing parts of roughly equal size that is clearly an unsatisfactory state and novel contributions employing improved methods are therefore welcome this decade has witnessed an enormous upswing in oligopoly theory the deadweight loss literature has been influenced by that to a minor extent only avinash dixit s and nicholas stern s 1982 algorithms are however notable exceptions another valuable exception is micha gisser s 1986 attempt to apply a price leadership model for predicting the order of magnitude of the loss of consumer surplus in the united states our intention is however to show that a couple of quite reasonable modifications challenge the conclusion of small deadweight losses implied by the latter approach we do not suggest any improvement allowing for the influence of product differentiation and concentration of local markets we only note that the deadweight losses are under rather than overestimated by those omissions our contribution is to show that two other assumptions that appear in gisser s analysis are crucial for the results we find that the ideas of unitary demand elasticity and equal supply elasticity for the leaders and the price taking fringe are questionable we also point out that the output distortion percentage loss of output may be quite large even if the percentage loss of consumer surplus is small this fact seems to be ignored in the literature consider first demand elasticity gisser assumes it to be unity like arnold c harberger 1954 empirical estimates are not necessarily reliable but the fact that they are often below unity should in our opinion be taken seriously see for example m s houthakker and lester p taylor 1966 and for the u s food and tobacco industries emilio pagoulatos and robert sorensen 1986 gisser s technique of predicting welfare losses means that realistic values of demand elasticity and concentration are inserted in a formula that is derived from a theoretical model it is therefore inadequate to limit its applicability to the case of unitary elasticity which appears dubious from an empirical standpoint consider then supply elasticity gisser assumes that both the leading group and the fringe of price taking firms have the same supply elasticity our intention is not to discuss the behavior of firms in detail but we nevertheless find it questionable that firms assume the roles as either active leaders or passive price takers if their technologies are more or less identical why do firms not dominate because they have a larger supply elasticity it could even be considered a styl acting professor department of economics abo akademi the swedish university of turku fanriksgatan 3 sf 20500 turku finland participants in the department s research seminars have delivered useful criticism i thank leila stahl for research assistance remaining errors are my own losses that are less than 1 percent of gnp are reported by arnold c harberger 1954 david schwartzman 1960 frederick w bell 1968 dean worcester 1973 john siegfried and thomas k tiemann 1974 bjmrn wahlroos 1984 and outside the united states wahlroos 1984 finland losses that are larger than 1 percent and usually larger than 3 percent are reported by david kamerschen 1966 and keith cowling and dennis c mueller 1978 for the united states the losses may be large in the uk according to cowling and mueller 1978 and malcolm c sawyer 1980 and in france according to frederick jenny and andre paul weber 1983 simulations in different types of models by abram bergson 1973 j a kay 1983 and g k yarrow 1986 suggest losses that are at least potentially large

international corporate entrepreneurship and firm performance the moderating effect of international environmental hostility abstract globalization of the world economy has encouraged u s companies to leverage their resources and skills by expanding into existing or new foreign markets u s companies have also acquired new capabilities by locating important functional activities overseas and joining with foreign partners in new markets through alliances and joint ventures these opportunities however are tempered by the constraints imposed by the competitive forces that exist in international environments aggressive government intervention technological changes and fierce local rivalries all contribute to hostile international environments for u s firms global expansion success in global business operations requires resourcefulness and entrepreneurial risk taking the activities of u s companies in foreign markets therefore provide a unique opportunity to examine the effects of international corporate entrepreneurship ice efforts on company performance ice is defined as the sum of a company s efforts aimed at innovation proactiveness and risk taking these efforts offer an important means of revitalizing and renewing established companies and improving their performance few studies have empirically examined the effects of ice activities on companies financial performance this study used data from 98 u s companies to 1 determine the impact of ice efforts on firm performance and 2 explore the moderating effect that the perceived hostility of the international environment has on the relationship between ice and company performance the results showed that ice was positively associated with a firm s overall profitability and growth as well as its foreign profitability and growth those firms that aggressively pursued ice in international environments with higher levels of hostility had higher return on assets roa but did not achieve significantly higher levels of growth however as hostility in the international environment continued to intensify roa rose and then fell as companies increased their ice activities thus there was a point of diminishing returns to a company s aggressive pursuit of ice under excessive environmental hostility the results highlight both the rewards and risks of pursuing ice companies benefit from ice activities by achieving higher overall performance as well as foreign profits and growth in revenue however the aggressive pursuit of ice does not always guarantee superior performance our results show that the payoff from ice is moderated by executives perceptions of the hostility of their firm s international business environment our findings highlight the importance of ice for organizational success both overall and in foreign markets yet the results compellingly suggest that there are upper limits to the potential gains a firm achieves from its aggressive pursuit of ice when the international environment in which it competes is hostile

hedging foreign exchange exposures independent vs integrative approaches many financial managers think that foreign exchange hedging decisions are mainly a choice between to hedge or not to hedge nevertheless previous researchers applied ederington s portfolio approach and found that even for risk minimization a complete hedge does not lead to the lowest risk instead there exists an optimal hedging ratio which yields the lowest variance however the discussions of these former studies were concentrated on a single foreign currency cash flow in the real world financial managers are more likely to expect multiple cash flows arriving at different times even for the same foreign currency this paper therefore discusses whether financial managers should hedge these cash flows independently or combine them under one integrative hedging scheme it is shown that while the independent approach does not lead to the lowest risk its hedging effectiveness is close to that of the integrative approach given the time and resource constraints of financial managers the simpler independent approach appears to be a better choice

a framework for integrated risk management in international business treatments of risk in the international management literature largely focus on particular uncertainties to the exclusion of other interrelated uncertainties this paper develops a framework for categorizing the uncertainties faced by firms operating internationally and outlines both financial and strategic corporate risk management responses

how risky should an r d program be abstract this paper presents a two stage model describing the optimal choice of r d risk among r d programs with the same expected outcome it demonstrates that the choice of the highest risk r d program is a dominant strategy under bertrand or cournot competition

on the relationship between firm size and export intensity export marketing literature supports the view that firm size is positively related to export intensity although the empirical findings have been mixed a number of theoretical arguments are used to support this proposition i e international marketing economies of scale limited managerial and financial resources of small firms decisionmaker s risk perception based on a large survey of the italian manufacturing industry the article falsifies the proposition and challenges some widely held assumptions in export marketing literature

choice of foreign market entry mode impact of ownership location and internalization factors firms interested in servicing foreign markets face a difficult decision with regards to the choice of an entry mode the options available to a firm include exporting licensing joint venture and sole venture several factors that determine the choice of a specific foreign market entry mode have been identified in previous literature these factors can be classified into three categories ownership advantages of a firm location advantages of a market and internalization advantages of integrating transactions this study examines the independent and joint influences of these factors on the choice of an entry mode multinomial logistic regression model is employed to test the hypothesized effects

multinational investment under uncertainty in the chemical processing industries this study uses a sample of chemical processing industries to evaluate the effect of two types of uncertainty on the decision to invest in an industry it analyzes the effects of relative price uncertainty through exchange rates and input prices and demand uncertainty on the probability of expansion in a particular country the study then focuses on the behavior of individual companies and distinguishes companies by whether or not they are multinationals in the production of the product the results confirm previous evidence that exchange rate uncertainty has a negative effect on capacity expansions by domestic corporations and no effect on investment by multinational corporations finally the study also shows that expansions of production capacity in this industry are more likely to occur in those countries where capacity utilization is higher

strategic r d with spillovers collusion and welfare the author considers a two stage r d then output or price duopoly game in which r d spills over so reducing the marginal cost of both the investing firm and its rival the author compares the noncooperative regime to three collusive regimes joint venture collusion on r d price fixing collusion at the price or output stage and merger collusion at both stages and evaluates under what circumstances a collusive regime improves welfare if spillovers are sufficiently large all three regimes are beneficial although mergers are more likely and price fixing less likely to produce specific benefits than are joint ventures copyright 1994 by blackwell publishing ltd

global strategy and multinationals entry mode choice this paper makes a case directed towards establishing the importance of global strategic considerations in choosing multinationals entry mode specifically it is our contention that beyond the environmental and transaction specific factors well established in the literature to affect the entry mode decision we should also consider the strategic relationship a multinational envisages between its operations across borders in reaching this decision after incorporating various global strategic variables into an eclectic framework of the factors influencing the entry mode choice this paper tests both the validity of the overall framework and the importance of each entry mode determinant in differ entiating among entry modes this is done based on ninety six multinational managers responses to a survey questionnaire concerning their entry mode decision experiences the results suggest that an express incorporation of global strategic variables into an analysis of the entry mode decision is warranted

sunk costs windows of profit opportunities and the dynamics of entry abstract this article adds two elements to a standard model of monopolistic competition first the number of potential entrants is limited in each period and increases only over time second the potential entrants differ with respect to the consumers valuation of the variant they could offer the resulting simple model exhibits a rich dynamic structure covering the product life cycle a path dependent equilibrium and the traditional textbook case of entry the welfare analysis confirms the view that there cannot be too much entry even entry of inefficient firms improves welfare

looking at the cost side of monopoly welfare loss under oligopoly is defined as that part of consumer surplus which is lost and not regained by higher profits in a model with asymmetric firms this implies that the total welfare loss consists of the deadweight loss triangle plus a cost side inefficiency effect due to the fact that in imperfect markets not all firms utilize the lowest cost technique using a flexible cv model we calculate these effects empirically for two relatively homogeneous industries pulp paper and cement the deadweight loss triangles are shown to be smaller than the cost difference effect the staircase for these industries

the simple economics of research portfolios this article identifies biases in market portfolios of parallel research projects arising from the noncongruence of social goals and private aspirations occasioned by those circumstances where the market rewards only the winner and where the winner is awarded the entire social surplus it is shown that under risk neutrality this noncongruence implies that t he market encourages the development of too many discoveries too lar ge a spread in the distribution of the quality of discoveries and an excessive occurrence of multiple discoveries copyright 1987 by royal economic society

does foreign aid mitigate the adverse effect of expropriation risk on foreign direct investment abstract we construct a model of fdi risk and aid where a country loses access to fdi and aid if the country expropriates fdi we show that i the threat of expropriation leads to under investment ii the optimal level of fdi decreases as the risk of expropriation rises and iii aid mitigates the adverse effect of expropriation risk on fdi the empirical analysis employs data for 35 low income countries and 28 countries in sub saharan africa over the period 1983 2004 we find that risk has a negative effect on fdi and that aid mitigates but cannot eliminate the adverse effect of risk

welfare losses under cournot competition abstract in a market for a homogeneous good where firms are identical compete in quantities and produce with constant returns the percentage of welfare losses pwl is small with as few as five competitors for a class of demand functions which includes linear and isoelastic cases we study markets with positive fixed costs and asymmetric firms we provide exact formulae of pwl and robust constructions of markets were pwl is close to one in these two cases we show that the market structure that maximizes pwl is either monopoly or dominant firm depending on demand finally we prove that pwl is minimized when all firms are identical a clear indication that the assumption of identical firms biases the estimation of pwl downwards

economic exposure and integrated risk management most corporate risk management research focuses on particular risk exposures to the exclusion of other interrelated exposures by contrast this study models corporate risk exposures using a multivariate approach integrating the distinct exposures of interest to finance international business and strategy researchers the paper addresses the implications of multivariate modeling for corporate risk management some key methodological issues arising in empirical estimation of corporate economic exposures and directions for research on integrated risk management 1998 john wiley sons ltd

misreading liberalisation and privatisation the case of the us energy utilities in europe in response to energy market liberalisation and privatisation initiatives promoted by the eu and other european states in the 1990s a large number of us energy utilities expanded their activities in europe mainly through acquisitions the size of their investment was a decade later matched by the ensuing scale of their retreat wealth destruction and often forced exit combining interviews industry studies published financial data and company reports this article examines critically their strategy and in light of widespread failures seeks to answer the question of what went wrong it is argued that mistakes might have been avoided through greater appreciation of how market liberalisation evolves given changing government priorities and general sovereign risk

testing the bargaining hypothesis in the manufacturing sector in developing countries the bargaining power model of hc mnc host country multinational corporation interaction conceives of economic nationalism in terms of rational self interest and assumes both inherent conflict and convergent objectives in extractive industries there is strong evidence that outcomes are a function of relative bargaining power and that as power shifts to developing hcs over time the bargain obsolesces a cross national study of the bargaining model using data from 563 subsidiaries of u s manufacturing firms in forty nine developing countries indicates that while the bargaining framework is an accurate model of mnc host country relationships manufacturing is not characterized by the inherent structurally based and secular obsolescence that is found in the natural resource industries shifts in bargaining power to hcs may take place when technology is mature and global integration limited in industries characterized by changing technologies and the spread of global integration the bargain will obsolesce very slowly and the relative power of mncs may even increase over time

competition innovation and the use of innovations i examine the effect of competition on the production and use of innovations using evidence from a natural experiment of policy reform the introduction of cartel legislation in the uk in the late 1950s i compare manufacturing industries which had been collusive and were therefore affected by the policy with those that had been competitive and were not affected the intensification of competition following the abolition of cartels caused a short run decrease in innovations produced but had no significant effect in the long run in contrast innovations used increased both in the short run and in the long run

the exchange rate exposure of a global competitor this paper analyzes the exposure of operating cash flows to an exogenous exchange rate change for a firm operating internationally as a multimarket oligopolist i e a global competitor and facing demand that depends in a general way on the exchange rate it is shown that exposure is the sum of a base case exposure identified in other studies and two other components terms associated with exchange rate induced demand shifts and terms associated with competitors s reoptimization following the exchange rate shock in general the magnitudes of these additional terms are significant especially in the presence of asymmetries across markets and firms numerical examples are provided that incorporate asymmetries corresponding to stylized facts about some u s markets and u s manufacturers

the effect of national context on perceptions of risk a comparison of planned versus free market managers a model is developed to explain the effect of national context on risk related decisions an essential feature of risk related decisions is substantial uncertainty or inadequate information as well as significant consequences regarding future outcomes we argue that differences in information flows and consequences across national institutional environments affect the perceived uncertainty of decision situations for this reason the institutional environment in which managers reside should play a fundamental and systematic role in influencing their perceptions of risk we test our model on managers from two environments that contrast in terms of information and consequences related to risk a free market economy the u s and a centrally planned economy the czech republic in 1992 our results indicate that the institutional environment does indeed play a strong and systematic role in explaining managers risk related decisions thus national environment appears to be an important contextual condition to which the propensity to take risks is sensitive

on the dynamic efficiency of bertrand and cournot equilibria abstract this paper compares bertrand and cournot equilibria in a differentiated duopoly with r d research and development competition it shows that cournot competition induces more r d effort than bertrand competition however the price is lower and output is larger in bertrand than in cournot competition furthermore the bertrand equilibrium is more efficient than the cournot equilibrium if either r d productivity is low or spillovers are weak or products are very different if r d productivity is high spillovers are strong and goods are close substitutes then the bertrand equilibrium islessefficient than the cournot equilibrium journal of economic literatureclassification number l13

government intervention in the venezuelan petroleum industry an empirical investigation of political risk two important aspects of political risk analysis that have not received much attention in the literature are a the reasons why multinational firms experience different types of intervention and b the timing of intervention in order to address these issues this research develops a conceptual model of political risk based on the premise that host government intervention is related to specific objectives of the government vis a vis multinational firms information reflecting the attainment of objectives motivates the government to intervene in a given manner the application of this model to the case of the venezuelan petroleum industry from years 1947 to 1976 provides some support for this model and gives insight into the timing of specific types of intervention

understanding the structural characteristics of a firm s whole buyer supplier network and its impact on international business performance building on the network theory and the concept of organizational ambidexterity we investigate the impact of structural characteristics of a firm s whole buyer supplier network network density betweenness centralization and average clustering coefficient on its international business ib performance we also explore the moderating roles of average path length and pagerank centrality using a manually collected dataset and a robust empirical methodology we find that while network density is negatively related betweenness centralization and average clustering coefficient have an inverted u shape and a u shaped relationship with ib performance respectively we also find significant moderation effects and in the process we show the economic importance of firms whole buyer supplier network to their ib performance we contribute to the international business and whole buyer supplier network literature

explaining the national cultural distance paradox past studies of the relationship between national cultural distance and entry mode choice have produced conflicting results some scholars find cultural distance associated with choosing wholly owned modes others find cultural distance linked to a preference for joint ventures in this paper we provide both theoretical and empirical evidence to explain the discrepant findings and thus help to resolve the national cultural distance paradox

portfolio choice in research and development we analyze the effects of a winner take all patent mechanism on the riskiness of the research strategies chosen by competingfirms as well as on thefirms incentives to duplicate research projects nash equilibrium choices are compared with the social optimum in a oneshot simultaneous move game in which competitors choose the riskiness or correlation of their research performances we show that neither society nor firms have any preference for correlation per se while the divergence between social and privately optimal levels of risk depends on skewness characteristics of the probability distribution over discovery dates and on levels of risk aversion

foreign investor reactions to risk and uncertainty in antitrust u s merger policy investigations and the deterrence of foreign acquirer presence motivated by the potential for antitrust and competition policies to be protectionist in effect we formulate the theoretical prior that merger policy deters foreign acquirer participation in local m a markets the policy risk and policy uncertainty characteristic of merger review may negatively affect foreign acquirers more so than domestic acquirers thereby disadvantaging foreign acquisitions of local firms and deterring future cross border investment activities we test this prior by employing sector level data on u s merger policy investigations and foreign acquirer presence in u s m a markets over the 2002 2017 period our panel data methodological approach indicates that the risk and uncertainty characteristic of u s merger policy disproportionately deters the acquisition activities of foreign investors the empirical results also suggest that the application of competition and merger policies in other national jurisdictions where there is less of a strong commitment to antitrust principles might also be effectively protectionist

the obsolescing bargaining model mnc host developing country relations revisited the traditional bargaining model of mnc host developing country relations has become obsolete today those relations are better understood as the result of a two tier multi party bargaining process tier 1 bargaining between the governments of host and home countries occurs bilaterally or through multilateral institutions it produces macro rules on fdi that affect micro negotiations in tier 2 per the traditional bargaining model the extent of fdi liberalization resulting from tier 1 bargaining varies predictably across home host country pairs and industries suggestions for testing the two tier bargaining model are also presented

price competition non price competition and market structure theory and evidence from the uk this paper examines the impact of price competition on advertising r and d expenditure and market structure a general theoretical result is derived which restricts the space of possible outcomes regarding the behaviour of concentration and advertising r and d expenditure following an intensification of price competition the theory is tested using uk data on the evolution of competition concentration and advertising over 1954 77 the econometric results suggest that the introduction of restrictive practices legislation in the uk caused a rise in concentration in previously cartelized high advertising manufacturing industries and probably also a fall in advertising intensity

a survey of corporate programs for managing terrorist threats this article reports on a survey of united states based multinational corporations mncs and the corporate programs they use to reduce the impact of terrorism it was found that less than 50 of the mncs surveyed had formal programs to deal with a terrorist attack most of the mncs that did have an anti terrorist program spent their money on security equipment and not on training executives and their families the training that did take place concentrated on handling weapons and avoiding being kidnapped respondents were also critical of the federal government s lack of assistance in dealing with terrorists

environmental risks and joint venture sharing arrangements multinational enterprises mnes have responded to the open door policies of socialist countries in recent years by investing in their economies through joint ventures mnes must formulate their investment strategies to control and manage the environmental risks peculiar to a traditional centrally planned economy cpe in which contextual and transactional environments are blurred joint venture sharing arrangements may be structured to control exposures to uncertainties and to align the interests of transactional parties mostly state owned enterprises to those of the venture this study tests the hypothesis that a foreign investor s share in a joint venture in a cpe is inversely correlated with 1 the amount of uncertainties and risks and 2 the external dependency of the venture on the contextual and transactional relationships of the host country the hypothesis is supported by empirical evidence from data on american joint ventures in china

how do mncs vote in developing country elections research on multinational corporations mncs and host government political risk in developing countries has largely ignored local electoral politics economic policies and the mnc investment ince

intensity of competition and the incentive to innovate abstract the effects of intensity of product market competition on r d incentives are analysed in a model capturing the strategic interactions between firms with different cost levels first four axioms are proposed that a measure of intensity of competition should satisfy then the effects of intensity of competition on the value of the innovation are analysed and it is shown that the axioms imply the existence of a non monotone relation between intensity of competition and the value of an innovation

welfare losses in oligopoly and monopolistic competition estimates of the magnitudes of monopoly welfare losses mwl appearing in the economics literature have tended to differ quite widely at one end of the spectrum we find figures of the order of o i of gnp quoted by harberger i 954 in his pioneering study while at the other extreme cowling and mueller i 978 have derived estimates of around i o of gross corporate product from some of their measures two of the major sources of such differences lie in the treatment of a the general equilibrium aspects of deviations between prices and marginal costs and b the impact of market power on the cost levels of firms but unfortunately the tendency of writers to adopt rather different analytical frameworks often makes it difficult to accurately assign the variations in the estimates to specific factors in the present paper the issue of monopoly welfare loss is considered in the context of a differentiated goods model based upon work on monopolistic competition by spence i976 and by dixit and stiglitz i977 within a set of common assumptions about demand the effects of varying cost conditions and differing equilibria on the level of mwl are examined on this basis four major factors connected with suboptimal resource allocation can be identified a supernormal profits b product differentiation c suboptimal scale and d factor bias the first of these needs little explanation its association with welfare loss has been well explored in structure conduct performance theory and is used extensively in applied anti trust economics attention will therefore be focused upon the remaining three all of which can produce mwl in zeroprofit equilibria the paper is organised as follows section ii sets out and discusses the differentiated goods framework which will be used throughout the rest of the analysis it is also shown how a simple transformation of variables reduces the model to the homogeneous goods case and thereby makes immediately available a number of familiar results from the structure conduct performance literature in section iii the focus is on welfare analysis of monopolistic competition the results here are essentially restatements of earlier work although the transformation of variables helps to clarify their foundations section iv extends the analysis to incorporate additional decision variables such as advertising research and development etc while section v considers the case where market conditions will not sustain a large number of firms in equilibrium and suboptimal scale effects become important factor bias is analysed in

the demise of expropriation as an instrument of ldc policy 1980 1992 this paper reports data collected on expropriation activity by developing countries from 1980 1992 extending previous work by kobrin 1984 kobrin s assumption that expropriation activity would continue to decrease over time and his reasons for this assumption are supported the paper introduces recent phenomena which further indicate that expropriation is unlikely to resurface in the near future as a source of multinational corporation developing country contention many developing countries now protect foreign direct investors from expropriation the broad scale movement in developing countries to privatize state owned enterprises also indicates that governments will not be eager to replace private sector activity with state ownership

is the market biased against risky r d this article analyzes the riskiness of the r d strategies chosen by firms engaged in a winner takes all patent race in contradiction to dasgupta and stiglitz 1980 we show that when the distribution of invention times is symmetric the market equilibrium cannot be safer and may be riskier than is socially optimal we identify the economic reason for the emergence but only if there are few competitors

why are developing countries privatization this article tests alternative hypotheses about why developing countries are pursuing privatization a policy that gained considerable popularity in the 1980s univariate and multivariate analysis indicate that privatization was more likely to be pursued by countries with high budget deficits high foreign debt and high dependence on international agencies like the world bank and the imf in regions such as latin america and asia the trend was also more likely in countries a that seemed to have overused state enterprises in the past and b those in which the private sector had grown faster than average and was thus more ready to assume tasks once assigned to state enterprises in africa however the policy may have been imposed by external agencies on countries that were not necessarily ripe for privatization for multinational firms the international opportunities created by privatization are likely to be greater in the 1990s than in the 1980s