Governments as Owners: Nationalization of International Business and Social Responsibility

Abstract

Purpose

This chapter presents a discussion and an analysis of the literature on nationalization of international business. National governments have justified the expropriation and nationalization of the operations of foreign multinational in their jurisdiction based on the social responsibilities as welfare providers, and safeguarding the short- and long-term interest of their citizens.

Methodology/approach

There are multiple studies that show the processes and impacts of nationalizations and privatizations (also called denationalizations) worldwide. This chapter analyses specific cases to the light of existing international business literature and proposes prepositions for future studies.

Findings

This chapter presents an analysis where theories of internationalization could be used to analyze specific advantages of States and domestic investors when assuming ownership of operations of international business in their national territory.

Originality/value

The context, processes, and consequences of nationalization of foreign firms historically, economically, and politically have generally a correlation either with political changes, and macroeconomic scenarios related to scarcity and uncertainty in the international market of extractive industries, or with nationalistic political views in national governments.

Citation

Gonzalez-Perez, M.A. and Sosa, S. (2015), "Governments as Owners: Nationalization of International Business and Social Responsibility", Beyond the UN Global Compact: Institutions and Regulations (Advances in Sustainability and Environmental Justice, Vol. 17), Emerald Group Publishing Limited, Leeds, pp. 219-231. https://doi.org/10.1108/S2051-503020150000017018