Multinational enterprises and structural transformation in emerging and developing countries: A survey of the literature

“…The minimum wage was increased by more than 90 percent in three years from 1999 to 2002. The regulations also introduced market rigidities in hiring process, guaranteeing employment rights, resulting that nowadays labor policy of Indonesia is one of the most stringent in Asia [16] .…”

Section: Indonesia Profilementioning

confidence: 99%

“…13 of 2003 related to the issuance of Presidential Decree No. 3 of 2006, which concerning on the Regulation of Investment Climate Improvement Package, trying to reverse the post Asian crisis measures of increasing the labor rights [12,16] . It is relevant to note which both countries continued to be strongly regulated by the State, even though the labor's rights were flexibilized, where flexibilization is perceived as foreign investment attraction in terms of competitiveness, but not reduced State intervention, to improve the environment of the private sector, which includes the MNCs [17] .…”

Section: Divergent Paths: the Convergence Of The Globalization Impact...mentioning

confidence: 99%

Dazed and Confused: The Impact of Multinational Firms on Local Labor Markets

Haeruddin

Tenrisau

Salam

et al. 2022

macro. manag. & public. polic.

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In this high-speed globalization era, the opportunities for multinational companies (MNCs) have become vast. In such situation, these companies can obtain maximum profit only if they know how to use workforce properly. This paper aims at analyzing how these MNCs can use international workforce without violating ethics, universal labor rights, and human resource rules. For this purpose, two most favored countries i.e., China and Indonesia have been taken and compared throughout the paper. The first part of this paper deals with the introduction of the profile of above mentioned two countries and opportunities to the MNCs. The second part deals with the roles of institutions in dealing with labor workforce. The third part indicates divergent paths and the convergence of the globalization with its impact over host countries. The final part concludes the entire discussion in a few paragraphs. The entire paper has been developed keeping the scholarly work, journal articles and critical analysis factor under consideration.

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“…Licencing, imports, and foreign direct investment (FDI) are three of the most widely used methods for international technology transfer (Coe & Helpman, 1995 ; Fagerberg, 1994 ; Freeman & Soete, 1997 ; Fu & Ghauri, 2021 ; Fu, Pietrobelli, & Soete, 2011 ). Among them, FDI as a bundle of financial capital and technological and managerial knowledge is an effective vehicle that facilitates international knowledge diffusion and promotes industrialisation in developing host countries (Buckley et al, 2006 ; Dunning, 1994 ; Fu & Hou, 2021 ; Fu et al, 2021a ; Ghauri, Fu, & Väätänen, 2017 ; Lall, 1996 ). The developing countries, especially the Newly Industrialised Economies and the Asian Tigers in East and South East Asia, and in the emerging economies such as China, have benefited from foreign technology transfer (Fu et al, 2011 ; Hou & Mohnen, 2013 ; Hu, Jefferson, & Qian, 2005 ; Javorcik, 2004 ; Lall, 1996 , 2001 ; Liu & Buck, 2007 ; Pietrobelli & Rabellotti, 2007 ).…”

Section: The Solutionmentioning

confidence: 99%