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By United Nations

Banana costs in the ecu Union are virtually double global degrees. those costs are maintained by means of restrictive import quotas and price lists that generate rents that accrue to manufacturers and vendors. the ecu Union is obliged to take away its quantitative regulations and exchange them with price lists which are more likely to provide choice to current quota holders from ACP international locations. symptoms are really small percentage of the rents are at present accruing to ACP manufacturers and the loss in hire will be greater than offset by means of the growth of european imports.

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In many countries, this has been because they have been unwilling to risk their jobs at a time of continuing high unemployment (Marginson and Sisson 1994). Finally, labour for the most part can no longer count on government as a protector, partner, or arbitrator in its relations with business. As governments have liberalized, they have often cut off the umbilical cord with labour, although some, such as the Thatcher government with 30 GLOBALIZATION AND EUROPEANIZATION the miners' strike, have done so more brutally than others.

This includes not only the United States—its offensive for the American movie industry against the French in the GATT negotiations being a recent example—but also that great defender of laissez-faire capitalism, Margaret Thatcher, when it came to pitching British companies' products abroad. Third, the national environment continues to affect business competitiveness and to inform firm practice. Even such a simple thing as the home country's incorporation laws and tax laws continues to have a major impact on how multinationals operate: for example, Japan's high tax on profits that leads Japanese firms to concentrate on gaining market share, not profits; America's tax laws that favour debt over equity and also encourage exporting operations overseas; or Germany's 50 per cent tax on capital gains that has ensured industrial firms ‘patient capital’ from banks unable to divest themselves of large portfolios of company stocks—although this changed as of 2002.

Second, multinationals remain tied to national economic contexts through national political linkages, if only to gain government favours, whether in the form of subsidies, export support, or international leverage. Generally, the corporation has a special relationship with the home country which enables it to count on the government to come to its aid to protect existing markets and to help it penetrate new ones. This includes not only the United States—its offensive for the American movie industry against the French in the GATT negotiations being a recent example—but also that great defender of laissez-faire capitalism, Margaret Thatcher, when it came to pitching British companies' products abroad.

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