Plant Relocation: When is it a Viable Threat?

12 Pages Posted: 22 Sep 2003

See all articles by Ron Edwards

Ron Edwards

Monash University - Department of Management

Abstract

This paper uses research from the field of international business to investigate when a multinational corporation's threat to leave a country is likely to have substance. Some multinationals have broad flexibility to relocate. Others do not. Customer expectations, transportation costs and organisational factors may limit their flexibility. The challenge for trade unions in high wage countries like Australia is to be able to assess these factors and judge whether threats to 'move to Asia' are viable. Often they are not.

Suggested Citation

Edwards, Ron, Plant Relocation: When is it a Viable Threat?. Journal of Industrial Relations, Vol. 45, pp. 23-34, March 2003. Available at SSRN: https://ssrn.com/abstract=416681

Ron Edwards (Contact Author)

Monash University - Department of Management ( email )

Wellington Road
Clayton, Victoria 3168
Australia

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