This paper analyses the relationship between union power and the presence of multinational enterprises. The focus is on how union-firm bargaining structure and bargaining scope affect-and are affected by-strategic foreign direct investment (FDI). Concerning the bargaining scope (for a given...

Comparing domestic- and foreign-owned firms in Germany, this paper finds that foreign-owned firms are more likely to focus on short-term profit. This influence is particularly strong if the local managers of the German subsidiary are not sent from the foreign parent company. Moreover, the...

This paper analyses how a diversifying firm can strategically design its wage policy in order to gain market power in unionized markets. This paper shows that union power in the local market power in the local market coupled with the nature of the wage contractual agreement process-i.e. the type...

This paper studies the strategic role of foreign direct investment (FDI) in a framework with early-on capacity investments by a multinational enterprise (MNE) and relevant fixed costs. A three-stage game is considered : (i) MNE chooses internationalisation mode, and output to precommit by...

Comparing domestic- and foreign-owned firms in Germany, this paper finds that foreign-owned firms are more likely to focus on short-term profit. This influence is particularly strong if the local managers of the German subsidiary are not sent from the foreign parent company. Moreover, the...