Setting the Scene

Abstract

Why do MNEs exist? What structural changes in the world political economy have encouraged the development of MNEs? How do the disciplines of IPE and IBS understand the role of MNEs? We shall address these central questions in this chapter. The reason for undertaking an analysis of these questions is in order to provide an analytical framework for our research. Underlying this is an attempt to build on an emerging synthesis between IPE and IBS on the nature of the relationship between governmental and private authority in the international system. We argue that the work of a number of scholars in both fields (Strange 1988a, 1988b, 1996 and Vernon 1966, 1971, 1979, 1993 in IPE, and Cantwell 1991, Casson 1985, 1987, Dunning 1988a, 1988b, Porter 1980, 1990 and Rugman and Verbeke 1990 in IBS) has provided crucial theoretical and conceptual frameworks in which we and other scholars are seeking to build (e.g. Baron 1995, 1997; Cawson 1997; Coen 1997; Coen and Grant 2000; Cowles 1997; Cutler et al. 1999; Hocking and McGuire 2001; Milner 1988; Maxwell et al. 1997; Yoffie 1993).