International Institutions and Multinational Enterprises

International Institutions and Multinational Enterprises

Global Players – Global Markets

International Institutions and Global Governance series

Edited by John-ren Chen

This book provides rigorous analysis of the wide range of questions surrounding the role of international institutions in governing global business, especially multinational enterprises (MNEs). The analysis, both theoretical and empirical, focuses on the corporate governance of MNEs and to what extent their management takes into account the negative effects of their activities. Also discussed are: how nation states and international institutions control the activities of MNEs, and how the role and strategies of international institutions can be changed to minimise any negative effects without hampering the positive aspects and effects of MNEs.

Chapter 9: Market Entry Strategies of Multinational Firms in Local and Regional Markets and their Consequences for Regional Development

Klaus Weiermair and Mike Peters

Subjects: economics and finance, international economics


9. Market entry strategies of multinational firms in local and regional markets and their consequences for regional development: the case of the accommodation and food industry in Western Austria Klaus Weiermair and Mike Peters TOURISM: NO LONGER A FRAGMENTED INDUSTRY? Tourism is certainly not as global as the car or electronics industry but it is more global than food processing, education or retailing. Globalisation in tourism is driven on the demand side by global competition for tourist destinations offering ‘global product bundles’ thereby producing similar types of fantasy worlds or tourism experiences and facilitated by increasing international flows of capital, technology and labour (Smeral, 1996; Weiermair, 2001b). What type of changes in Austria’s tourism have been brought on by or can be attributed to globalisation phenomena? About 40–55 per cent of the decline in Austrian tourism can be attributed to relative prices in comparison to other destinations. This has been greatly enhanced through the opening of new markets and the greater transparency of market prices (for example, introduction of the Euro and use of the US dollar in new markets). A variety of studies have shown quality deficits in Austria’s tourism industries to exist, notably in the areas of animation, cultural attractions, shopping and transport, with an overwhelming proportion of tourists received from neighbouring Germany and some uncertainties as to a continuation of this tourist flow in the future (Freitag, 1996; Fuchs and Weiermair, 1999; Mazanec and Zins, 1996). Immediate strategic questions evolve around the exploration of new...

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