An Interdisciplinary and Comparative Examination
- Corporations, Globalisation and the Law series
Chapter 2: Multinational Enterprises as Business Organizations
2. Multinational enterprises as business organizations 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...
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