ABSTRACT
Hymer’s analysis was informal and he illustrated these possible scenarios through two case studies. One, which he took from Dunning’s early study of American investment in Britain (Dunning, 1958), was the tobacco industry. The case explained the development, after an initial period of cut-throat competition, of a market-sharing agreement according to which Imperial Tobacco obtained a monopoly in Britain and Ireland, while the US and dependent markets were to be supplied by American Tobacco. The other and contrasting example was the meatpacking industry. Both American and British firms had established meat-packing plants in Latin American countries. Bitter competition ensued, but, unlike the tobacco case, there was no successful resolution of the conflict. Both sets of firms continued to operate independently in Latin American markets.
