Corporate Governance Issues in International Business

Andrew Inkpen and Kannan Ramaswamy

in Global Strategy

Published in print December 2005 | ISBN: 9780195167207
Published online September 2007 | e-ISBN: 9780199789825 | DOI:

Series: Strategic Management Series

Corporate Governance Issues in International Business

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This chapter examines the nature of corporate governance with an emphasis on issues relevant to the MNE. The corporate governance practices of firms influences their strategies and competitiveness and, therefore, managers involved in global competition should view knowledge of international governance as an essential part of their repertoire of strategy skills. The chapter reviews the corporate governance systems found in the United States, Japan, and Germany, and considers the nature of governance systems in emerging markets. An important theme in the chapter is that for international business managers, corporate governance will, in all probability, take on greater meaning as country practices evolve and more of the world's economic activity is conducted through markets and firms rather than states. When firms rather than states are involved in economic activity, all stakeholders will expect that value creation and transference is fair, and that managers are held accountable for their strategic actions.

Keywords: MNE; United States; Japan; Germany; stakeholders; shareholders

Chapter.  9692 words. 

Subjects: Business Strategy

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