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![handle is hein.gao/gaobaaxuu0001 and id is 1 raw text is:
DOCUMENT RESUME
06859 - [B23674241
U.S. Foreign Relations and Bultinaticnal Corporations: Uhats
the Connection? PAD-78-58; B-172255. August 23, 1978. 62 pr. + 2
appendices (15 pp.).
Report to the Congress; by Elmer B. Staats, Comptrcller General.
Issue Area: International Economic and Military Programs (600);
Proqram Evaluation Systems (2600).
Contact: Program Analysis Div.
Budqet Function: International Affaiz: Foreign information and
Exchange Activities (153); International Affairs: Ccmduct of
Foreign Affairs (152).
Orqanization Concerned: Department of State; Department of
Commerce.
Congressional Relevance: House Committee on International
Relations; Senate Committee on foreign Relations; Congress.
Authority: Sherman Act of 1890 (15 U.S.C. I). Clayton Act of
1914 (i5 U.S.C. 18,. Federal Trade Ccamission Act of 1914
(15 U.S.C. 41). Webb-Pomerene Act of 1918 (15 U.S.C. 61).
Hickenlooper Amendment [of] 1962. Gonzales Amendments [of]
1972. Trading with the Enemy Act [of] 1917. Export
Administration Act. Forsign Assistance Act [of] 1961. Trade
Act ( of] 1914. 15 U S.C. 45(a). 50 U.S.C. O2401. 22 U.S.C.
283r. 112 U.S.C. 2841. 22 U.S.C. 2370(e). 19 U.S.C. 2101. 19
U.S.C. 2461.
dultinatio.i l corporations INMCs) are defined by the
Unitad Nations as enterprises buich own cr ccntrol production
or service facilities outside the country in which they are
based. They engage in many types of operations which have
varying impacts and policy implications for the hem. and host
qovernments. The legal existence of MiCs is derived from the
laws of the home government, but the firms are also restricted
by the laws of the nations in which they operate.
Findings/Conclusious: MNCs have been a source cf conflict and
cooperation in international affairs. The conflict cften results
from actual or perceived threrts to national sovereignty. The
impacts3 of AICs on U.S. foreign relations are illustrated by the
following: international tensions are zonetiaes created by the
extraterritorial application of U.S. legislation; U.S. embassies
furnish assistance to U.S. firms overseas, including diplomatic
support; MICs conduct direct negotiations with host country
qovernments with or without official U.S. knowledge and
approval; MNCs can promote international cooperation through
reqional economic integration, increased trade, and ty bringing
toqether firms and nations to promote their respective
interests; they contribute to the formulaticn of fcreign 1policy
either directly or by influencing public ofinion; they can
enhance the economic strength and influence of both hone and
host nations; and U.S. security can be affected by the influence
of host nations on the MNCs. Projections for tte future are](ViewImageLocal?handle=hein.gao/gaobaaxuu0001&div=1&collection=&method=preview&ext=.png&size=3)