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Regions, Globalization, and the Knowledge-Based Economy$
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John H. Dunning

Print publication date: 2002

Print ISBN-13: 9780199250011

Published to Oxford Scholarship Online: November 2003

DOI: 10.1093/0199250014.001.0001

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Firms, Regions, and Strategy in a Diverging World: The Australian Case

Firms, Regions, and Strategy in a Diverging World: The Australian Case

Chapter:
(p.303) 11 Firms, Regions, and Strategy in a Diverging World: The Australian Case
Source:
Regions, Globalization, and the Knowledge-Based Economy
Author(s):

Peter Sheehan

Bhajan Grewal

Publisher:
Oxford University Press
DOI:10.1093/0199250014.003.0012

Many countries distant from the mainstream of knowledge‐based wealth creation have a number of related concerns: whether it can be ensured that, as nations, they will participate fully in emerging global growth processes; what policies, in respect of both multinational enterprises (MNEs) and local firms, will best secure this participation; and whether this participation, if it is achieved, will generate growing divergence on a regional basis within the nation. The objective of this chapter is to explore the reality of these phenomena, and the diversity of policy responses to them, for the case of one small, open economy far removed from the main sources of knowledge generation—Australia. After briefly reviewing some recent relevant developments in economic theory, the analysis focuses particularly on the roles of foreign direct investment (FDI) and of both local firms and MNEs within Australia, and on some of the regional aspects of this involvement.

Keywords:   Australia, foreign direct investment, globalization, knowledge‐based economy, multinational enterprises

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