Transnationals, International Organization and Deindustrialization

Abstract

We examine the link between transnational corporations (TNCs), international state apparatuses and deindustrialization. We suggest that international state apparatuses, such as the EC, are institutional devices, complementary to firms (including TNCs) and states in international production and the division of labour. Their policies are the result of, or express, a complex interaction of (the interrelationships between) often conflicting interests of, for example, consumers, TNCs and state functionaries. The complex articulation of the relationships involved and the associated often non-predetermined nature of emergent policies, allows for the identification of applicable, e.g. consensus-based, policies. Internat ionalization of production and the TNC is linked with the emergence of internat ional state apparatuses, such as the EC, but also the 'new international division of labour, deindustrialization and 'relative decline'. Being a home base to TNCs does not immunize a country from deindustrialization. All these support the concept that EC policies which support forces competitive to TNCs could be of benefit to Europe.