ABSTRACT

Over the last three decades an extensive literature has emerged concerned with the diffusion of employment practices in multinational companies (MNCs). The level of interest in this issue reflects the growing size and scope of MNCs: they are seen as ‘the primary shaper of the contemporary global economy’ (Dicken, 1998: 177). MNCs are becoming increasingly influential in patterns of international trade, accounting for around two-thirds of world exports of goods and services, while foreign direct investment has consistently grown much faster than output. In employment terms estimates suggest that MNCs directly employ around one in five workers in developed economies, with this proportion rising to two in five once those working in suppliers of MNCs are taken into account (Ruigrok and van Tulder, 1995).