Toyota In France
The Political Economy of Foreign Direct Investment
Toyota in France
The French have always been somewhat ambivalent toward foreign direct investment. In the 1960s and 1970s, successive French governments used a mixture of socialist and nationalist rhetoric to spurn foreign investment proposals by companies such as General Motors. These governments took the view that direct investment by foreign multinational enterprises would damage the French economy. Government officials believed strongly in the need for France to build its own indigenous enterprises. They argued that the economic power enjoyed by foreign multinationals gave them the ability to dominate any markets they entered, at the expense of locally grown enterprises. Successive socialist governments in France expressed a desire to control economic activity through extensive planning and the nationalization of private businesses. Letting foreign multinationals into the country was thought to be inconsistent with this......
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