How do non-American Embassy Officials Perceive the American Multinational Companies?
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The purpose of this study was to determinehow non-Americanembassy officialsin INTRODUCTION Washington,D.C. perceive: the objectives of MNCs. the effects of the MNCson income levels and income distribution,employment, technology transfer,capital markets,and competition. the present degree of governmentalcontrolof the MNCs. the degree of controlthat should be exercised over the MNCs.
The study is based on informationobtainedfroma survey of the attitudesand opinions METHODOLOGY of people assigned to the commericalsections of the embassies in Washington,D.C.1 The sample consists of responses from 99 officials in embassies of 54 countries. Althougha reasonable cross section of responses is included, the results cannot be projected to a larger universe because embassy officialsare not representativeof a largersegment and because a numberof embassies (53%)did not participatein the study. As previouslyagreed with the respondents, the informationis presented in summarizedformin orderto assure the anonymityof the officials. Thefirstquestion inthe survey asks the respondentsto rankinorderof importance(1 to 8) theirperceptions of the objectives of the MNCs.Theremainderof the surveyasks the respondents to provide their perceptions, on a seven-point semantic differentialscale, of a series of controversialissues concerning MNCs. The average responses are calculated for the people fromeach of the variousgroups of countriesin the sample; i.e., by geographic region, by economic system, and by level of economic development.2
The respondents rankthe followingobjectives according to what they believe are the actual operatingpolicies of the multinationalcompanies3(1 is the most important): No. 1. 2. 3. 4. 5. 6. 7. 8.
Average Rank Rank Order
Objectives greatercontrolover markets supportthe economic policies of theirgov't increase profits help to improvethe economic conditionsof world stabilize prices of their products supportthe politicalpolicies of theirgov't greatercontrolover rawmaterials personal ambitionsof their managements
2.85 5.39 2.65 6.31 5.12 6.38 4.00 5.79
ANALYSIS Perceived Objectives of the MNCs
2 5 1
7 4 8 3 6
* JamesH.Soodis AssociateProfessorof andInternational BusinessattheSchoolof Marketing BusinessAdministration, D.C. TheAmericanUniversity, Washington
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The people inthe totalsample and most of those inthe variousgroupings perceive the actual objectives of the MNCsto be: 'increase profits,''greatercontrolover markets,' and 'greatercontrolover raw materials,'in that order. Previousresearch in this area supports these perceptions.4 TABLE 1 PERCEPTIONS OF OBJECTIVES OF MNC's
4J 4J U0
o0
0 o
O Co
a
'
HO
0
O Total
Sample
Developed Developing
Countries Countries
P
44f
3 1
7 7
3 1
3 7 7 7
3
Countries
.
) C4o
1 3
Socialist
4
H
7
Middle East Countries
4-I
a
1
3 1
7
0
5
8 5 5
(
4W
0~
C)-
X
(
C
4-
3
1 1 3 3 1
Cou
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