ABSTRACT
This chapter analyses the impacts of Falconbridge's acquisition of the Kristiansand refinery. It also addresses five main issues which were important at Falconbridge's affiliate in Kristiansand: knowledge development and innovation, labour relations, taxation, environmental considerations and supply of hydropower. The main questions however are how the subsidiary was organized and run, its autonomy and how Falconbridge managed its relationship to its host country. Fritz Hodne remarks in his book on Norwegian economic development that in the 1920s foreign ownership was regarded as a lesser evil than unemployment. Norwegian economic nationalism reached its high water mark in 1917 with the introduction of the so-called concession laws, which aimed at limiting and regulating foreign ownership. The main negotiations took place nationally, between the Norwegian Chemical Industry Workers' Association and the Electro-Chemical Employers Association. While most foreign firms investing in Norway were seasoned firms, often industry majors, Falconbridge was a newly established firm.
