Chapter

Implications for National Governments

John M. Stopford

in Governments, Globalization, and International Business

Published in print July 1999 | ISBN: 9780198296058
Published online November 2003 | e-ISBN: 9780191596209 | DOI: http://dx.doi.org/10.1093/0198296053.003.0017
 Implications for National Governments

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In this chapter, John Stopford points to both similarities and differences in the reactions of national governments to globalization. On the one hand, there has been a largely universal movement towards the deregulation and liberalization of markets for all kinds of assets, goods and services, which, itself, has aided the cross‐border mobility of some firm‐specific assets—notably of technology and organizational capabilities—and most countries have also introduced a series of macroeconomic reforms more attuned to the needs of the international market place. On the other hand, the actions of governments to reconfigure their macro‐organizational policies better to harness and upgrade the resources and capabilities within their jurisdiction have been much more piecemeal and disparate: some have confined their attention to ensuring that the main vehicles of globalization (trade and foreign direct investment) helped to promote, rather than inhibit, their national economic goals; others have concentrated on improving the competitive advantages of their firms; but relatively few appear to have given much attention to how best nations might create or restructure institutions or improve the quality of general‐purpose inputs. Stopford also takes up some of the issues raised in the introductory chapter and explored in more detail in the country case studies: he shows particular interest in the alternative policies of governments to reconfigure dynamic comparative advantage, and in the different reactions to globalization of leading and catch‐up nations; he elaborates on a number of paradoxes of contemporary global markets, and also gives some attention to the consequences of globalization for the organization of firms and states, and the extent to which cross‐border alliances between these entities is likely to promote a more heterarchical organizational structure of each. More generally, Stopford believes that globalization is leading to a range of conflicting trends, acting simultaneously at global, regional, national, and sub‐national levels.

Keywords: companies; cross‐border alliances; cross‐border mobility; deregulation; economic policy; economic reform; firms; foreign direct investment; global markets; global markets; globalization; government; liberalization; macroeconomics; macro‐organization; mobile assets; national governments; organization; restructuring; structural change; technology; trade

Chapter.  11734 words. 

Subjects: International Economics

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