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5 Defining Rights and Responsibilities
5 Defining Rights and Responsibilities
Pages 59-68
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From page 59... ...
as they relate to the rights of MNCs establishing and doing business in host countries, (2) issues concerning MNC behavior in host countries and related responsibilities, and (3)
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From page 60... ...
Although TRIM s were included, the agreement does not impose strong disciplines on host country governments in such areas as performance requirements. Among developed countries, the voluntary Code on the Liberalization of Capital Movements and the Declaration and Decisions on International Investment and Multinational Enterprises of the OECD remain the most prominent formal multilateral agreements concerning national policies toward FD!
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From page 61... ...
in addition to efforts to further liberalization and greater implementation of nondiscriminatory policies in broad multilateral forums, there may be opportunities to pursue deeper liberalization and harmonization of policies that affect foreign participation among likeminded, probably developed, countries. These efforts, one possibility being a direct investment treaty involving the KU, the United States, and Japan, should, in the short term, be aimed at achieving effective national treatment and, in the long term, at equal access by MNCs to participation in host country economies.
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From page 62... ...
firms undoubtedly will benefit from more aggressive Japanese efforts at market opening, should such efforts materialize, a larger share of the direct benefits will likely flow to other Asia Pacific nations and to Japanese companies. The overall macroeconomic effect will lead to indirect benefits for the United States, as Asian exports to Japan fuel growth and create a larger Asian market for U.S.-based MNCs.
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From page 63... ...
In addition to standard criteria for good corporate behavior incorporated into various guidelines and corporate statements, the United States, Japan, and other host countries will increasingly scrutinize technological aspects of MNC behavior. The most important technology-related contributions of MNCs come from creation of a competitive environment in the host country, which raises standards of performance by domestic companies, and the range of activities MNCs undertake that result in enhancing the capabilities of host country employees and suppliers.
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From page 64... ...
For example, the commitment to provide subsidiaries in major markets with full-line capabilities and to handle operations locally to the extent possible implies working toward building R&D facilities, training local employees, and transfering superior management practices, expanding the scope of authority of and providing satisfying career paths for local managers, and increasing utilization and upgrading of local supplier networks. All of these elements of technological contribution related to empowering and enhancing the capabilities of subsidiaries and their employees and suppliers can be measured and evaluated in some way.
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From page 65... ...
TASKS FOR THE FUTURE · Whatever the degree of progress made toward liberalized world trade and investment, convergence in economic systems, and equal access, business and technological leaders in the United States and Japan likely will continue to display significant gaps in their viewpoints and operating assumptions. In view of the importance of the two countries to the world economy and the global scientific and technological enterprise, opportunities for discussion to increase mutual understanding should be maintained and expanded on a bilateral and multilateral basis.
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From page 66... ...
for the rest of the worId.~4 The Japanese business community joined in the debate, with some advocating that Japanese firms "ease up" on foreign competitors in such industries as automobiles and form strategic alliances with foreign competitors to promote kyosei, usually translated as ''symbiosis.''iS Although there were wide `differences among and between the revisionists and the Japanese perspectives, the resulting dialogue on the differences and relative merits of American, European, and Japanese capitalism, while at times somewhat acrimonious, constituted a positive and stimulating exchange of perspectives. Today, some of the bearings that oriented that debate a few years ago have changed dramatically.
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From page 67... ...
Both the United States and Japan are OECD members. The Declaration and Decisions on International Investment and Multinational Enterprises was established in 1976 and includes the National Treatment instrument, the Guidelines for Multinational Enterprises, an instrument on International Investment Incentives and Disincentives, and cooperation on Conflicting Requirements imposed on MNCs by different governments.
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From page 68... ...
6 Belying the often-heard assertion that foreign MNCs often try to hide their success in Japan and that the main problem in Japan's trade relations with the United States and the rest of the world is a lack of public relations effort is the continuing effort of the Japan External Trade Organization (JETRO) which has devoted a significant part of its publication activity in recent years to publicizing cases of successful foreign companies in Japan.
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