STATES AND COMPANIES: POLITICAL RISKS IN THE INTERNATIONAL OIL INDUSTRY (FOREIGN INVESTMENT).
Item
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Title
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STATES AND COMPANIES: POLITICAL RISKS IN THE INTERNATIONAL OIL INDUSTRY (FOREIGN INVESTMENT).
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Identifier
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AAI8708299
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identifier
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8708299
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Creator
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LAX, HOWARD L.
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Contributor
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Dankwart A. Rustow
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Date
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1987
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Language
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English
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Publisher
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City University of New York.
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Subject
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Political Science, International Law and Relations
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Abstract
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The study of political risk is a direct response to specific problems confronting transnational corporations (TNCs). As such, most works focus on developing predictive methodologies to forecast the incidence of political risk events and pay scant attention to the underlying cause or theory.;This dissertation attempts to begin laying the theoretical groundwork for understanding political risks by relating the analysis of political risk to a broader theory of interaction between host states and TNCs. Using the international oil industry as the content area, a conceptual model for the explanation of political risks is developed.;The premise of this dissertation is that the structure of the host/TNC relationship gives rise to an inherent conflict of interests and issue hierarchies between the two actors. These structurally determined differences are the root cause of political risks.;This conflict is mediated primarily by the bargaining and market relationship between state and firm. The bargaining relationship defines the range of opportunities available to the actors in dealing with each other and their ability to exploit those opportunities. The bargaining relationship is seen as initially favoring the TNC and steadily shifting in favor of the host state.;Two other mediating variables are domestic demands and supports and the style and ideology of leadership. These define the necessity and willingness of the state to impose changes on its investment relationship with TNCs.;The articulation and implementation of host state interests in policies constitute specific political risk events. Political risk events confronting transnational oil companies (TNOCs) are embodied in host state changes in their oil policies. Policy changes, the immediate cause of political risk events, are explained in terms of the structural relationship and conflicting interests, with the timing and strategy of changes a function of the mediating variables.;Despite the inherent conflict of interests, the mediating variables constrain the actors and necessitate that they interact on a practical level in terms of a mixture of conflict, cooperation and collaboration. The long-term conflict of interests, however, is no less intense.
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Type
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dissertation
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Source
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PQT Legacy CUNY.xlsx
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degree
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Ph.D.
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Program
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Political Science
