In the post-war era, multinational enterprises had to adapt to a new type of political economy. The international economic system was changed. When operating abroad they often had to accept a set of new regulations in their host countries. This was also the case for multinationals operating in Norway. Politics and business were more closely intertwined than ever before.

The social democratic Labour Party dominated Norwegian politics during 1945–65. The economy was strongly regulated, especially in the earlier years. This chapter offers a brief description of Norwegian industrial policy in the 1940s and 1950s. What were the prevailing views on foreign ownership and foreign investments? How were the foreign-owned companies treated?

As we shall see, Falconbridge and the Kristiansand refinery had three important points of contact with the Norwegian authorities: hydroelectric power supply, the tax regime and the institutions regulating the labour market. The main questions in this chapter are how Falconbridge and its subsidiary adapted to Norway's post-war social democratic business system and what benefits the company managed to extract from the state and local authorities.

Foreign Ownership in the Social Democratic Era

The post-war Labour Party governments aimed at high growth, rapid industrial modernization and full employment. Investments and economic growth were prioritized over welfare and redistribution. The government was planning for the long run. Growth was considered necessary in order to create a better and fairer society.