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The purpose of this paper is to provide a critical historical analysis of the business (mis)behaviors and influencing factors that discourage enduring cooperation between principals and agents, to introduce strategies that embrace the social values, economic motivation and institutional designs historically adopted to curtail dishonest acts in international business and to inform an improved principal–agent theory that reflects principal–agent reciprocity as shaped by social, political, cultural, economic, strategic and ideological forces

The critical historical research method is used to analyze Chinese compradors and the foreign companies they served in pre-1949 China.

Business practitioners can extend orthodox principal–agent theory by scrutinizing the complex interactions between local agents and foreign companies. Instead of agents pursuing their economic interests exclusively, as posited by principal–agent theory, they also may pursue principal-shared interests (as suggested by stewardship theory) because of social norms and cultural values that can affect business-related choices and the social bonds built between principals and agents.

The behaviors of compradors and foreign companies in pre-1949 China suggest international business practices for shaping social bonds between principals and agents and foreign principals’ creative efforts to enhance shared interests with local agents.

Understanding principal–agent theory’s limitations can help international management scholars and practitioners mitigate transaction partners’ dishonest acts.

A critical historical analysis of intermediary businesspeople’s (mis)behavior in pre-1949 (1840–1949) China can inform the generalizability of principal–agent theory and contemporary business strategies for minimizing agents’ dishonest acts.

The Foreign Corrupt Practices Act (FCPA) of 1977 and its amendment – the Trade and Competitive Act of 1988 – are unique not only in the history of the accounting and auditing profession, but also in international law. The Acts raised awareness of the need for efficient and adequate internal control systems to prevent illegal acts such as the bribery of foreign officials, political parties and governments to secure or maintain contracts overseas. Its uniqueness is also due to the fact that the USA is the first country to pioneer such a legislation that impacted foreign trade, international law and codes of ethics. The research traces the history of the FCPA before and after its enactment, the role played by the various branches of the United States Government – Congress, Department of Justice, Securities Exchange commission (SEC), Central Intelligence Agency (CIA) and the Internal Revenue Service (IRS); the contributions made by professional associations such as the American Institute of Certified Public Accountants (AICFA), the Institute of Internal Auditors (IIA), the American Bar Association (ABA); and, finally, the role played by various international organizations such as the United Nations (UN), the Organization for Economic Cooperation and Development (OECD), the World Trade Organization (WTO) and the International Federation of Accountants (IFAC). A cultural, ethical and legalistic background will give a better understanding of the FCPA as wll as the rationale for its controversy.

Recruiting students to study abroad is a difficult challenge for American colleges and universities. Study abroad advisors and directors of international programs are searching for better ways of marketing the overseas academic experience. Approximately 3% of U.S. students who pursue a bachelor’s degree study abroad at some point in their college career. In any given year, less than 1% (0.8%) of U.S. students take part in study abroad (Hayward, 2000, p. 9). American higher education falls far short of the Presidential Commission’s target of 10% by 2000 set in 1979 (Strength Through Wisdom, 1979). The typical college student who participates in study abroad is an undergraduate liberal arts major who spends one semester in a country in Western Europe. In 1999–2000, 63% of American students studying abroad were in Europe (Snapshot of Report on Study Abroad Programs, 2000, p. 1). Almost one fourth go to one country – Great Britain. Fifteen percent of study abroad students travel to Latin America, 6% to Asia and 3% to Africa (Hayward, 2000, p. 10). The small number of U.S. students (129,770) who experienced foreign study in 1998–1999 compares unfavorably with the much larger number of foreign students (490,933) who enrolled in U.S. institutions (Hesel & Green, 2000, p. 5). Even more disheartening is the fact that nearly 50% of students entering 4-year colleges say that they want to study abroad and that three out of four adults agree that students should study abroad (Hesel & Green, 2000, p. 1). When asked to choose which activity in college is most important to them, entering freshmen rank study abroad second only to internships (Hesel & Green, 2000, p. 3). There are obviously a number of barriers to student participation in foreign study.

Is a born-global strategy reflective of high performance or are there merits in a regional strategy? In studying a sample of 32 internationalizing small-and medium-sized enterprises (SMEs), we find that many of the early internationalizing firms that formally meet the accepted “born-global criteria” are actually regional. With this concept as a starting point, this study aims to contribute to the literature on early internationalizing firms by comparing how born globals (BGs) and born regionals (BRs) differ in terms of the liability of foreignness, networking activities and performance. Our results indicate that both liability of foreignness and knowledge development in networks is more challenging for BGs than for BRs, and for this reason, BRs are likely to perform better than BGs. Hence, we identify a “born global disadvantage” stemming from a lack in the capacity of acquiring relevant foreign-market knowledge and tackling foreign-market institutions. The implications of the study highlight the need for researchers and practitioners to be more careful when using the concept of BG and to acknowledge that differences do exist between regional and global business strategies.

The purpose of this paper is to examine the role of social interaction ties, trust and business networks in the acquisition of foreign business knowledge and foreign institutional knowledge. It also assesses the effect of these types of knowledge on small and medium enterprises’ (SME) export performance. Furthermore, this study determines the moderating role of absorptive capacity in the relationship between foreign business knowledge, foreign institutional knowledge and export performance.

This study used a survey research design using data from nontraditional SME exporters in Ghana. There were 257 respondents who were employees (managers/owners) of SMEs in Ghana. The model was analyzed using structural equation modeling.

Social interaction ties, trust and business networks have a significant effect on the acquisition of foreign business knowledge and foreign institutional knowledge. Furthermore, foreign business knowledge and foreign institutional knowledge have a significant positive effect on export performance. The path between foreign business knowledge and export performance is also moderated by absorptive capacity. However, the moderating role of absorptive capacity in the relationship between foreign institutional knowledge and export performance is not significant.

This study uses social capital to explain how SMEs acquire foreign business knowledge and foreign institutional knowledge, and how both affect SMEs’ export performance. Furthermore, it tests the moderating role of absorptive capacity in the relationship between foreign business knowledge, foreign institutional knowledge and export performance.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

The penetration of foreign banks into emerging markets has been linked with financial sector deepening and expansion of credit. However, there is little research into the interaction of financial sector institutions with broader transition and development dynamics. The purpose of this paper is to examine if the presence of foreign financial institutions helped to shape a better business environment over the long-run in emerging markets.

The authors use aggregate, country-level annual data for 107 developed and emerging market countries over a shifting 30-year time span (1983-2012). The authors use Prais-Winsten and System-GMM techniques on stationary variables to highlight linkages between foreign banks and the overall business environment. Where data were found to be non-stationary, the authors applied panel cointegration approaches, including Granger Causality and full-modified OLS, to research the same relationship.

The results show that foreign bank entry in emerging markets has had a positive effect in the broader business environment, with the biggest effects on legal protection, competitiveness, and time to import/export.

This paper does not consider the broader effects of foreign bank entry on competition within emerging markets, an area that the authors are considering as fruitful for future research.

The issue of financial sector impact on broader business environment issues has not been studied in the extant literature. Moreover, this study makes an important contribution for policymakers who are grappling with issues related to financial sector regulation in the post-global financial crisis world.

The equation of unified knowledge says that S = f (A,P) which means that the practical solution to a given problem is a function of the existing, empirical, actual realities and the future, potential, best possible conditions of general stable equilibrium which both pure and practical reason, exhaustive in the Kantian sense, show as being within the realm of potential realities beyond any doubt. The first classical revolution in economic thinking, included in factor “P” of the equation, conceived the economic and financial problems in terms of a model of ideal conditions of stable equilibrium but neglected the full consideration of the existing, actual conditions. That is the main reason why, in the end, it failed. The second modern revolution, included in factor “A” of the equation, conceived the economic and financial problems in terms of the existing, actual conditions, usually in disequilibrium or unstable equilibrium (in case of stagnation) and neglected the sense of right direction expressed in factor “P” or the realization of general, stable equilibrium. That is the main reason why the modern revolution failed in the past and is failing in front of our eyes in the present. The equation of unified knowledge, perceived as a sui generis synthesis between classical and modern thinking has been applied rigorously and systematically in writing the enclosed American‐British economic, monetary, financial and social stabilization plans. In the final analysis, a new economic philosophy, based on a synthesis between classical and modern thinking, called here the new economics of unified knowledge, is applied to solve the malaise of the twentieth century which resulted from a confusion between thinking in terms of stable equilibrium on the one hand and disequilibrium or unstable equilibrium on the other.

The study of international business has become increasingly important in recent years. So important that the American Assembly of the Collegiate Schools of Business (AACSB) has called for the internationalisation of business curricula. In 1992 and beyond, successful business people will treat the entire world as their domain. No one country can operate in an economic vacuum. Any economic measures taken by one country can affect the global economy. This book is designed to challenge the reader to develop a global perspective of international business. Globalisation is by no means a new concept, but there are many new factors that have contributed to its recently accelerated growth. Among them, the new technologies in communication and transport that have resulted in major expansions of international trade and investment. In the future, the world market will become predominant. There are bound to be big changes in the world economy. For instance the changes in Eastern Europe and the European Community during the 1990s. With a strong knowledge base in international business, future managers will be better prepared for the new world market. This book introduces its readers to the exciting and rewarding field of international management and international corporations. It is written in contemporary, easy‐to‐understand language, avoiding abstract terminology; and is organised into five sections, each of which includes a number of chapters that cover a subject involving activities that cross national boundaries.

The purpose of this paper is to provide a robust examination of the factors that accelerate/decelerate the divestment timing of retail banners in international markets.

The sample represents 3,235 foreign market banner operations of 132 international retailers across 144 countries using an accelerated failure time (AFT) parametric survival modelling technique.

Banner divestment is accelerated by both weak financial performance and smaller size. Furthermore, there is a synergistic negative detriment to the combination of both factors on divestment. Banner divestment is decelerated by deploying the corporation’s dominant format in the home country. Moreover, inadequately performing dominant banners are allowed more time to turn around their operations than subpar non-dominant banners. Concurrently, when host country markets are growing, poorly performing dominant banners are given more time to improve performance. When home market performance weakens, smaller, poorly performing banner divestment is accelerated.

The large data set covers more than half of the world so the authors are limited to observing corporate divestments without the benefit of the managerial decision-making process. The authors only have access to divestment data in annual units, which limits the ability to provide precise timing information. Though the authors have a wide variation in country conditions, data on smaller, poorer countries and domestic competitors is limited.

Small, poorly performing retail chains in foreign markets are divested faster than their counterparts. When retailers internationalize with their dominant chains, management tends to give these banners more time to succeed than non-dominant counterparts. Evidence also suggests that managers hesitate to withdrawal from a foreign market when the dominant banner is involved, regardless of a chain’s stunted growth and subpar performance.

This study provides the first examination of factors driving the divestment times of international retail chains using rigorous empirical survival time methodologies.