Insiders and Outsiders : Defining 'Who Is Us' in the North American Automobile Industry

Transnational corporations are oligopolistic firms engaged in strategic games designed to enhance their market share at the expense of their rivals. They benefit from having governments see them as insiders within a regional market, and their rivals as outsiders. This article hypothesizes that insiders consciously engage in two strategies: attempts to accentuate the insider-outside distinction in the eyes of the government and the general public; and lobbying for policies that benefit themselves at the expense of outsiders. Outsiders engage in offsetting strategies. The article develops a model of insiders and outsiders in a regional market and applies it to a case study of the North American automotive industry over the period 1980-1993. It is argued that the insiders are the Big Three automobile manufacturers; the outsiders are exports to, and transplant operations in, North America. The article finds that, since 1980, both insiders and outsiders have substantially increased the level of their strategic activities as they attempt to influence "who is us."