Emerging trading blocs and their impact on the strategic evolution of multinationals

Abstract

Identifies the similarities and differences between the concepts of regionalism, multilateralism, globalization and localization; and their effects on multinational enterprises (MNEs). Suggests that the responses of MNEs to the emergence of trade blocs are more complex than generally supposed and uses White and Paynter’s (1984) scope typology to analyse the various roles of subsidiaries in MNE strategy. Discusses three types of subsidiary (truncated miniature replica, rationalized product and world/regional product mandate), their strategic application in different economic situations and the effect on host countries.

Citation

Pearce, R. and Tavares, A.T. (2000), "Emerging trading blocs and their impact on the strategic evolution of multinationals", Managerial Finance, Vol. 26 No. 1, pp. 26-40. https://doi.org/10.1108/03074350010766459