Implications for Regions and Industries
Charlie Karlsson, Andreas P. Cornett and Tina Wallin
Migration has been intensifying and diversifying since the 1990s. According to the United Nations International Migration Report, there were 244 million international migrants in 2015 – 10 per cent more than only five years earlier, in 2010 (international migrants are here defined as people living in a given country who are either foreign born or have foreign citizenship). Of these, more than two-thirds (71 per cent) lived in high-income countries, while the developing regions hosted 29 per cent of the world’s total international migrant population. Socio-economic transformations such as those induced and intensified by globalisation processes are usually drivers of increased international migration. They intensify grievances and opportunities that lead people to seek better living and working opportunities in distant lands while also facilitating transport and communication. This Handbook focuses on the dynamics that link migration and globalisation processes from economic, social, political and cultural perspectives, looking at the challenges that emerge for labour markets, welfare systems, families and cultures, and institutions and governance arrangements as well as norms. This introduction discusses in detail, and with reference to the relevant literature, the interconnection between migration and globalisation, and presents the structure of the Handbook.
Chapter 1 explores the rationale for the creation of a multilateral trading system in the aftermath of the Second World War. It examines the efforts for the creation of an International Trade Organization (ITO) and the use of the method of Provisional Application for the General Agreement on Tariffs and Trade 1947 (GATT 1947) and discusses the three theories that have been used to explain the creation of the GATT. Some of the additional rules obligations negotiated in the context of WTO protocols of accession might prove to be initial attempts to address the realities posed by 21st century ‘supply-chain’ trade. This chapter introduces one of the overarching questions addressed in this book, namely whether negotiations in the context of WTO accession have sometimes been a ‘rule-making laboratory’ in which the WTO has attempted to gradually reform some of the disciplines that currently underpin the organization.
Theory and History
This chapter is based on an unpublished paper presented at a plenary session on 40 years of internalization theory at a conference in Vienna in December 2016. It examines the evolution of the internalization theory of the multinational enterprise over the past 40 years and, in the light of this, considers its potential for further development. The existing theory represents a synthesis of different strands of research, underpinned by a common set of economic principles. Its focus is on the global economy, and a representative global industry, rather than just the individual firm. The chapter shows how the existing theory can be extended to fulfil the ultimate ambition of early theorists, which was to analyse the boundaries of firms in an oligopolistic global industry.