Multinational Enterprises and Tort Liabilities
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Multinational Enterprises and Tort Liabilities

An Interdisciplinary and Comparative Examination

Muzaffer Eroglu

This book conducts an interdisciplinary and comparative examination of tort liabilities of multinational enterprises (MNEs). In the first part, it examines the social, economic, managerial and legal characteristics of MNEs and compares the findings of this examination to the current understanding of MNEs in the way that tort liability is applied to them. In the second part, the book examines the existing laws and principles related to liability of MNEs from a variety of jurisdictions with the aim of assessing whether these laws are adequate for the challenges that modern MNEs create. In the final part, Muzaffer Eroglu proposes solutions to the problems of tort liability of MNEs.
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Chapter 2: Multinational Enterprises as Business Organizations

Muzaffer Eroglu


Introduction There is a growing expectation in business and MNEs studies to examine the structural changes in MNEs because examination of the issues only on the basis of the simplified structure of MNEs is far from creating sound solutions to the problems examined in this book. Therefore this book includes examination of the modern structure of MNEs. This will provide a modern understanding of the concept of MNE in business management studies, which will create more efficient ways of thinking. The need to examine the organizational structure of business organizations lies in the fact that if we wish to develop an adequate economic as well as legal theory of the modern business enterprise and the contemporary economic activities of them, we must begin to build a sufficient business and economic understanding of business organizations and build new laws on these facts.1 In other words, if one wonders at this stage why the structure of organizations has become the centre for discussions of legal theory, the answer lies in the realities of globalization that turned FDI and consequently international business activities towards a firm-based model rather than country of origin based model.2 Although the changes during the history of MNEs and its reflections have been, to some extent, observed and indicated in major economic, managerial and business studies, the history of the MNE studies from a legal perspective is based on the common misconception of business and economic analysis and its effect on law-making. It has stayed on the same assumption...

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