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In an influential paper, Arthurs argues that this restructuring of corporate governance in the context of economic integration plays the major role in the ‘hollowing out of corporate Canada’. US-owned firms have reduced the autonomy of their main centres of decision-making in Canada, reducing the resources and power of those corporate man- 38 Multinationals, Institutions and the Construction of Transnational Practices agers who were more acquainted with distinct Canadian institutions and culture.

1998) ‘Human Resource and Industrial Relations Practices of UK and US Multinationals in Germany’, International Journal of Human Resource Management, 9, 4: 732–49. Ó Riain, S. (2000) ‘States and Markets in an Era of Globalization’, Annual Review of Sociology, 26: 187–213. Rosenzweig, P. and Nohria, N. (1994) ‘Influences on human resource management practices in multinational corporations’, Journal of International Business Studies, 25, 2: 229–51. Scott, W. R. (1995) Institutions and Organizations, Thousand Oaks, CA: Sage.

The same research programme also looked at US multinationals in three other European countries, which allows different host country environments to be taken into account. , 2005: 278). There are, then, distinct political issues facing TNCs, and these entail continuing uncertainty and negotiation. We now offer a framework to address these issues. Power and political processes Realms of power TNCs operate in several different political spheres. It is useful conceptually to distinguish three of these.

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