By Neil Hood
The results of globalization techniques of firm organisations (MNEs) on nationwide and native improvement are explored and analyzed right here and implications of those results for coverage makers are highlighted. Containing contributions from foreign company students, the textual content addresses this formerly little explored yet seriously very important factor for the way forward for the area economic system.
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From the visionary bestselling writer of the second one global and the way to Run the realm comes a bracing and authoritative advisor to a destiny formed much less by means of nationwide borders than through worldwide provide chains, an international during which the main hooked up powers—and people—will win.
Connectivity is the main innovative strength of the twenty-first century. Mankind is reengineering the planet, making an investment as much as ten trillion money according to yr in transportation, power, and communications infrastructure linking the world’s burgeoning megacities jointly. This has profound effects for geopolitics, economics, demographics, the surroundings, and social identification. Connectivity, now not geography, is our destiny.
In Connectography, visionary strategist Parag Khanna travels from Ukraine to Iran, Mongolia to North Korea, Pakistan to Nigeria, and around the Arctic Circle and the South China Sea to provide an explanation for the fast and remarkable alterations affecting all the things of the planet. He indicates how militaries are deployed to guard provide chains up to borders, and the way international locations are much less at struggle over territory than engaged in tugs-of-war over pipelines, railways, transport lanes, and net cables. the recent fingers race is to connect with the main markets—a race China is now profitable, having introduced a wave of infrastructure investments to unite Eurasia round its new Silk Roads. the U.S. can merely regain flooring by way of fusing with its associates right into a super-continental North American Union of shared assets and prosperity.
Connectography bargains a distinct and hopeful imaginative and prescient for the longer term. Khanna argues that new power discoveries and applied sciences have eradicated the necessity for source wars; formidable delivery corridors and tool grids are unscrambling Africa’s fraught colonial borders; even the Arab international is evolving a extra peaceable map because it builds source and exchange routes throughout its war-torn panorama. while, thriving hubs equivalent to Singapore and Dubai are injecting dynamism into younger and seriously populated areas, cyber-communities empower trade throughout giant distances, and the world’s ballooning monetary resources are being correctly invested into development an inclusive international society. underneath the chaos of an international that looks to be falling aside is a brand new starting place of connectivity pulling it together.
Praise for Connectography
“Incredible . . . With the realm quickly altering and urbanizing, [Khanna’s] proposals may be tips to confront a substantially diversified destiny. ”—The Washington Post
“Clear and coherent . . . a well-researched account of ways businesses are weaving ever extra complex offer chains that pull the realm jointly while they squeeze out inefficiencies. . . . [He] has succeeded in demonstrating that the forces of globalization are successful. ”—Adrian Woolridge, The Wall highway Journal
“Bold . . . With a watch for bright info, Khanna has . . . produced an enticing geopolitical travelogue. ”—Foreign Affairs
“Connectivity has turn into a simple human correct, and provides all people on this planet the chance to supply for his or her kin and give a contribution to our shared destiny. Connectography charts the way forward for this attached global. ”—Marc Andreessen, normal accomplice, Andreessen Horowitz
“Ahead of the curve in seeing the battlefield of the long run and the recent type of tug-of-war being waged on it. Khanna’s scholarship and foresight are world-class. A must-read for the subsequent president. ”—Chuck Hagel, former U. S. secretary of defense
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Additional resources for The Globalization of Multinational Enterprise Activity and Economic Development
C. ) (1991), Global Research Strategy and International Competitiveness (Oxford: Basil Blackwell). , P. HAGSTROM and O. SOLVELL (eds) (1998), The Dynamic Firm: The Role of Technology, Strategy, Organisation and Regions (Oxford: Oxford University Press). DICKEN, P. (1994), 'The Roepke Lecture in Economic Geography: Global-Local Tensions: Firms and States in the Global Space-Economy', Economic Geography, vol. 70, pp. 101-2. DICKEN, P. (1992), Global Shift, 2nd edn (New York: Guildford Press). H. (1998), 'Globalization and the New Geography of Foreign Direct Investment', Oxford Development Studies, vol.
However, in the 1950s there was a surge of outbound investment by US corporations, especially in Europe. 9 Some of the economic implications of this phenomenon were explored by the present author in his 1958 book (Dunning, 1958), but it was left to Stephen Hymer (1960) of MIT and Ray Vernon of Harvard (1962, 1966) to offer a formal explanation of it. Neither found the answer in received theory. In his PhD thesis, Hymer, for example, argued that the theory of foreign (portfolio) investment could not explain the territorial expansion of firms, because the essence of this expansion was the transfer of real, not financial, assets; and that it occurred not in perfect, but in imperfect, markets.
The eight cases are evaluated in depth within the chapter and these issues explained for each of them. They are acknowledged to be a relatively rare breed and few appear as open to being contestable as governments would like. As in the Enright chapter, Peters makes a plea for targeted strategies for upgrading, focusing attention on the role played in this by credible clusterings of related activity. In Chapter 15, Nick Phelps, Kevin Morgan and Crispian Fuller round off the policy perspective by posing the question as to whether constitutional change in a small country with high FDI dependency such as Wales, will exacerbate regional differences in institutional capacities involved with the attraction and support of inward investors in the UK.
The Globalization of Multinational Enterprise Activity and Economic Development by Neil Hood