Dimensions and Perspectives of Interdependence: Exports, Multinationals, and New Forms of Internationalization

In the first chapter we demonstrated how the intensity and the nature of international interdependence has undergone radical and partly cyclical changes. This stands in sharp contrast to the basic tenets of the theory of “comparative advantage” as developed by Ricardo some 150 years ago. This paradigm is still not fundamentally questioned by main-stream economists — despite the following trends, which obviously fly in the face of its main assumptions: The replacement or supersession of spot transactions at arm’s length by transactions within hierarchically structured international organizations and/or by contracts with mutual influence on the behavior of the “transactors” cum “partners”.The replacement or supersession of international transactions with final goods and primary inputs such as raw materials, foodstuffs, energy, etc. by intermediate inputs (parts, semifinished goods, information, technical know-how, etc.) on the one hand and assets or rights to assets on the other (patents, licenses, capital equipment with embodied know-how, human and financial capital).Fundamental changes in the political environment and thus the climate of national policy-making (dramatic increase in the number of trading partners, new industrial competitors from the NICs and the LDCs, the rise of protectionism and neomercantilism, etc.), as well as in the behavior of interest groups affected by international forces within different types of countries.