Multinational Enterprise and Government Controls on Outward Foreign Direct Investment in the United States and the United Kingdom in the 1960s

The 1960s have been seen as critical in the development of multinational enterprise by social scientists. Business historians have provided a context to these developments but are only now beginning to consider the 1960s in the light of access to archival material. This article analyses the nature and extent of the tension between multinational enterprise and U.S. and U.K. national governments in the 1960s caused by the tightening of controls on FDI introduced to resolve balance of payments problems. A comparative approach is adopted to illustrate that these tensions were not restricted to the U.S. The tension revolved around different conceptions of business investment decision-making and of the contribution of multinationals to the national economy. It is also suggested that the impact of these measures was at the micro-level and this highlights the value of business history approaches.