Multinational Firms' Strategies when Facing the State: The Case of Nickel Mining in New Caledonia
Lagadec, Gaël
Multinational Firms' Strategies when Facing the State: The Case of Nickel Mining in New Caledonia - 2004.
97
This paper presents an analysis, based on the case of nickel mining in New Caledonia and the relationship between states and multinational firms (MNF). It aims at showing that the partners' objectives differ and that, to a large extent, MNFs can impose their own choices. The paper focuses on an innovating mining project by INCO, a Canadian MNF. It shows that the economic repercussions for the area will be small. However, MNFs can negotiate considerable tax exemptions. The paper then raises the question of why the project has been stopped by the firm, and it makes it clear that once gains have been obtained through negotiation, it may be profitable to not exploit the resource. Finally, the paper presents an analysis the importance for the firm to have projects in at least two countries so as to maximize concessions by the host countries by creating competition between them.
Multinational Firms' Strategies when Facing the State: The Case of Nickel Mining in New Caledonia - 2004.
97
This paper presents an analysis, based on the case of nickel mining in New Caledonia and the relationship between states and multinational firms (MNF). It aims at showing that the partners' objectives differ and that, to a large extent, MNFs can impose their own choices. The paper focuses on an innovating mining project by INCO, a Canadian MNF. It shows that the economic repercussions for the area will be small. However, MNFs can negotiate considerable tax exemptions. The paper then raises the question of why the project has been stopped by the firm, and it makes it clear that once gains have been obtained through negotiation, it may be profitable to not exploit the resource. Finally, the paper presents an analysis the importance for the firm to have projects in at least two countries so as to maximize concessions by the host countries by creating competition between them.
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