A Business Analytic Approach to Governments and Globalization

John H. Dunning

in Governments, Globalization, and International Business

Published in print July 1999 | ISBN: 9780198296058
Published online November 2003 | e-ISBN: 9780191596209 | DOI:
 A Business Analytic Approach to Governments and Globalization

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Draws upon and extends some of Michael Porter's ideas and writings on the interface between governments and the competitiveness of resources and capabilities within their territorial jurisdiction. In the first main section, the strategic response of firms to globalization is considered. The second main section looks at the changing roles of government, and suggests that one of the consequences of globalization is to underscore the role of national governments as vision setters and institution builders, as ensurers of availability of high‐quality, locationally bound inputs, as smoothers of the course of economic change, and as creators of the right ethos for entrepreneurship innovation, learning, and high‐quality standards. Their operational role, however, is viewed more critically: although, in some instances, the costs of government failure may be less than those of market or hierarchical failure, in others, governments would do better to try to reduce the latter failures than to circumvent them. The chapter also suggests that there is likely to be some dilution of the authority of national regimes as economic activity becomes more regio‐centric, while, at the same time, supra‐national agencies will increasingly harmonize the rules of the game for national policies designed to influence the location of economic activity, and particularly that of MNEs (multinational enterprises).

Keywords: business; companies; competitiveness; economic change; firms; globalization; government; location; market competition; multinational enterprises; national governments; national policy

Chapter.  7305 words.  Illustrated.

Subjects: International Economics

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