Book contents
- Frontmatter
- CONTENTS
- Preface
- 1 Aims and Approaches
- 2 The Industrial Background
- 3 The Rise and Fall of the Kristiansand Nickel Company, 1910–24
- 4 Falconbridge, the Kristiansand Plant and the Norwegian Business System, 1929–39
- 5 Vertical Integration and Trade Politics: Falconbridge's Success on World Markets in the 1930s
- 6 Managerial Practices and Transatlantic Tension
- 7 Occupied and Isolated, 1940–5
- 8 Restoring and Promoting the Subsidiary's Mandate: The Post-War Expansion
- 9 Multinational Enterprise and Norwegian Social Democracy
- 10 A Creative Subsidiary? Developing Kristiansand's Knowledge Resources
- 11 The Weakening of Falconbridge and the Strengthening of the Kristiansand Subsidiary
- 12 Multinational Enterprise, Host Society and Environmental Challenges
- 13 Creating a Competitive Subsidiary
- 14 Conclusions: The Making of a Subsidiary
- Notes
- Works Cited and Sources
- Index
5 - Vertical Integration and Trade Politics: Falconbridge's Success on World Markets in the 1930s
- Frontmatter
- CONTENTS
- Preface
- 1 Aims and Approaches
- 2 The Industrial Background
- 3 The Rise and Fall of the Kristiansand Nickel Company, 1910–24
- 4 Falconbridge, the Kristiansand Plant and the Norwegian Business System, 1929–39
- 5 Vertical Integration and Trade Politics: Falconbridge's Success on World Markets in the 1930s
- 6 Managerial Practices and Transatlantic Tension
- 7 Occupied and Isolated, 1940–5
- 8 Restoring and Promoting the Subsidiary's Mandate: The Post-War Expansion
- 9 Multinational Enterprise and Norwegian Social Democracy
- 10 A Creative Subsidiary? Developing Kristiansand's Knowledge Resources
- 11 The Weakening of Falconbridge and the Strengthening of the Kristiansand Subsidiary
- 12 Multinational Enterprise, Host Society and Environmental Challenges
- 13 Creating a Competitive Subsidiary
- 14 Conclusions: The Making of a Subsidiary
- Notes
- Works Cited and Sources
- Index
Summary
The previous chapter looked at how Falconbridge organized its subsidiary in Kristiansand, how this subsidiary became integrated into the Norwegian business system, its relations with local and national authorities and the efforts to utilize and strengthen the refinery's expertise.
This chapter examines the configuration of the international nickel industry and the political economy of nickel. The industry was dominated by an oligopoly of two large firms that cooperated in a quasi-monopoly. The market power of industry leaders made it next to impossible for firms without a secure raw material base – or a competitive refinery – to succeed. While Raffineringsverket A/S had failed on both counts Falconbridge fared much better. This was the main reason why Falconbridge was able to increase production and employment in Kristiansand. The chapter thus shows what foreign ownership and vertical integration had ‘to offer’ its Norwegian refinery and it helps explain why Falconbridge was so welcomed. As we also will see, Falconbridge was little affected by the rising protectionism in the 1930s. In this case, Falconbridge was able to mobilize political support from Norway in important trade negotiations.
All this has important bearings on our story. It not only contributed to Falconbridge's success on world markets, but also to the fact that the Kristiansand subsidiary at last could utilize its internal resources and competitive advantages.
Market Power and Market Development during the Depression
Two features helped shape the rather peculiar structure of the nickel industry.
- Type
- Chapter
- Information
- Multinationals, Subsidiaries and National Business SystemsThe Nickel Industry and Falconbridge Nikkelverk, pp. 49 - 58Publisher: Pickering & ChattoFirst published in: 2014