This chapter analyses the impacts of Falconbridge's acquisition of the Kristiansand refinery. What were the effects of foreign ownership? We will shortly review how production developed. The main questions however are how the subsidiary was organized and run, its autonomy and how Falconbridge managed its relationship to its host country. These questions are linked. As observed by Geoffrey Jones, the success of multinationals often rest their ability to integrate with local business and political networks and to tap local networks of innovation. This chapter addresses five main issues which were important at Falconbridge's affiliate in Kristiansand: knowledge development and innovation, labour relations, taxation, environmental considerations and supply of hydropower.

The discussion of these topics relates to a larger debate on how multinational companies conduct their business when going abroad. To what extent do these companies follow their national styles of doing business and to what extent do they adapt to host country circumstances? To what extent do the subsidiaries have any independent room to manoeuvre? As mentioned in the introduction, these issues have been discussed by several authors, including Edwards, Perlmutter, Storli, Whitley and Wubs. However, with the exception of Storli, none of them have examined how this worked out in the interwar era. As multinationals had to cope with increasing economic nationalism and prejudice against foreign ownership it probably became ever more important to adapt to host countries.