9 Pages

Some empirical evidence

In any particular case there are likely to be a number of reasons contributing to a firm’s decision to produce in more than one country. It is with this in mind that we shall focus on the following hypothesis: an at least contributory reason for the existence of some transnational is the division of workers into country-specific groups, enabling a firm to lower its labour costs when it is a transnational compared to when it produces in just one country. To explore this hypothesis we shall discuss some of the empirical evidence in the existing literature, looking in turn at results for Britain, the US, and Canada.