Published online by Cambridge University Press: 11 June 2012
American multinational advertising agencies first made inroads into the British advertising industry in the early twentieth century. Some were pioneers, but most came to Britain to service the advertising of American–based multinational companies. Their impact on British advertising was significant, particularly from 1945 until the late 1970s, years when American multinational agencies dominated the top end of the business. The British staged a major counter-challenge in both the British and American markets in the early 1980s, however, with considerable success. The basis of the British challenge was improved access to capital, which permitted expansion through acquisition, rather than the servicing of British–based multinational companies. Professor West places these developments in the context of multinational enterprise theory, using new data and evidence drawn largely from trade sources.
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37 In a rights issue, a firm offers new stock to current shareholders at a discount. Shareholders have a preemptive right to buy the shares or sell this right to others. This enables the firm to raise money without incurring debt. Rights issues also save companies money because the issue does not have to be underwritten. However, if shareholders fail to take up their rights, their holdings are substantially diluted. For a further discussion of their use by British agencies, see Advertising Age, 22 June 1987.
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