Strategy, labor relations and multinational corporations

Abstract

In this study, we analyze the main strategies used by multinational companies. In our analysis, we found that companies using a global or transnational strategy usually make vertical foreign direct investments, while those with a multi-domestic strategy make horizontal foreign direct investments. Both structures have strengths and weaknesses for companies and labor unions in terms of confrontation and negotiation. According to the definition of economic globalization, we analyzed the operating margins of both strategies, and we concluded that globalization has greatly favored the interests of multinational corporations.