Bricks and Mortar in a Borderless World: Globalization, the Backlash and the Multinational Enterprise
Global Strategy Journal, Volume 7, Issue 2, May 2017
29 Pages Posted: 27 Apr 2017
Date Written: January 31, 2017
Globalization, increased interconnectedness, and deep integration resulted in significant increases in trade and FDI from 1989 through 2008. The recession marked the end of that trend and the rise of a broad-based opposition that has economic, social, and political components. This article explores the backlash, arguing that is driven by sociotropic perceptions. While globalization can be explained as a cyclical or structural phenomenon, I argue that technological change results in a networked global economy, the transition from a space of places to a space of flows, and increases the potential cost of devolution to the point where economic independence is no longer feasible. Nonetheless, I conclude that MNCs face a period of prolonged uncertainty and develop implications for firm strategy.
Keywords: Globalization, nationalism, multinational enterprise, strategy
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