Problems of Growth and Stability
New Horizons in International Business series
Edited by Pier Carlo Padoan, Paul A. Brenton and Gavin Boyd
Industrialized countries are becoming more and more knowledge based, with the use of advanced technologies in production and marketing, the operation of their financial sectors, and the functioning of their systems of governance. The highly complex systems which are being formed are said to be ‘new economies’, in several senses, referring to their degrees of integration, their productivity levels, and the scale and diversity of their allocations of investment, but also to their interdependencies. Their structural linkages with each other are becoming larger, through transnational production and arm’s-length trade, with high-volume financial flows. In this vast process the evolution of their economic structures is being shaped more and more by multinational corporations, and those corporations, as competitors or alliance partners, are also becoming more interdependent with each other. In the emerging global pattern, efficiencies result from large-scale coordinations of operations within corporations; market efficiencies and failures result from collaboration and rivalries between the corporations; and government efficiencies and failures interact with the market efficiencies and failures as policy levels engage with macromanagement tasks through fiscal, monetary and microeconomic measures. Altogether there is deepening integration in the world economy, and its evolution depends very much on scales and methods of coordination, in all the complexities of intercorporate relations and of policy interdependencies. Coordination in the financing of productive activity is especially important for all the interdependent growth, and the main purpose of this volume is to assist understanding of this very demanding requirement for stable development in the world economy, including...