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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.

Focusing on the telecom manufacturing industry in China as a case, this paper contends that the existing literature needs to be expanded. Product cycle theory could be applied to explain multinational corporations’ strategies of importing and localizing their products in developing countries in order to take advantage of lower labor costs and to break barriers to the local markets. However, rapid technology changes have limited the power of traditional product cycle theory while favoring the “dynamic adding‐and‐dropping” product cycle. Meanwhile, the success of “Wintelism” and the maturity of cross‐national production networks in the global market have significant impacts on developing countries’ indigenous industries. Indigenous manufacturers start to take advantage of their strength in the distribution and production value‐chain and to outsource their weaknesses to Western corporations. This model of “reversed cross‐national production networks” represents a feasible industrialization path with great potential to enable indigenous manufacturers to emerge as competitors in advanced Western markets as well as less developed markets.

China’s open‐market reform and rapid economic growth have generated a tremendous surge in activity and market investment by multinational corporations (MNCs). By 2000, 400 of the 500 most famous MNCs had invested in China. One distinctive feature of China’ s business environment, its authoritarian political system, requires MNCs to practise strategic public affairs to interact constantly with the different levels of Chinese government, respond to the policies and further influence business policy formation. This paper proposes a conceptual model of MNC‐government bargaining that is composed of international political economy, dependency theory and agency theory. It then examines (1) the international and domestic influences on MNC‐government bargaining in China and (2) the strategies MNCs employed to influence Chinese laws for foreign business in their interests. A case study of the Chinese ban on direct selling operations in 1998 and Amway’s strategies to remove the ban is presented. Results suggest that effective public affairs should engage in the following activities: (1) issues management, (2) constantly and systematically analysing the MNC’s bargaining power with the host government, (3) selecting public affairs strategies based on the analysis of MNC‐government bargaining, (4) exercising relationship management, and (5) being ethical in its practice.

Since China initiated its “go global” policy that promotes its overseas investment, China’s Outward Foreign Direct Investment (OFDI) has increased almost twenty times during the last 10 years, reaching $55.9 billion in 2008. The issue of internationalization of Chinese OFDI has attracted increasing attention of researchers from a business perspective. This article systematically reviews the previous studies on overseas investments by Chinese MNEs and discusses the characteristics of Chinese internationalization behavior at both firm level and country level. The internationalization of Chinese companies cannot be understood as a simple game of “catch up” with established MNEs, and more firm‐level empirical studies should be carried out on how these characteristics influence firms’ strategic decisions.

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.

This paper aims to explore possible internal and external challenges of foreign multinational enterprises (MNEs) from developed countries to develop sustainable environmental development programs in China.

The research is based on the author's five years' field work (2006‐2010) in China. A total of 30 Chinese executives from 20 different foreign MNEs were interviewed about their companies' corporate social responsibility (CSR) programs.

The focus of 19 companies' environmental programs (95 percent) is internal production and operation efficiency. Only one of 20 companies is committed to increasing the capacity of local Chinese suppliers to comply with the environmental code of conducts listed in their CSR programs and to enable the entire global supply chain to fulfill the international environment standards. The key challenges for foreign companies not to have “holistic and integrated” approaches in their environmental programs are many: keen price competition among Chinese suppliers that are at the low end of global supply chains, some local governments prefer to have economic growth at the expense of environmental welfare, some companies prefer to pay an environmental fee for polluting the local environment as the fee is not high enough to reflect the cost, and the message given by CSR managers to Chinese suppliers are not implemented by their companies' purchasers.

This paper is the first attempt to examine how foreign MNEs balance their CSR requirements internally while managing the performance of their Chinese suppliers to be up to the CSR standards in the global supply chain.

The paper discusses the new concept of “Multinational Investment Projects” (MIPs) and its application in the context of international business operations in China. The petrochemical industry in China is used as the industrial context in which we investigate the interplay between the Chinese government, which encourages growth and investment activities in the sector, and the multinational petrochemical firms competing for global market share in this sector.

The paper investigates the nature of the petrochemical value chain and the investment activities in all of its segments. Using an originally created database of the top 180 MIPs in the petrochemical industry in China and additional context information the business environment in China, the paper reviews the investment strategies of multinational petrochemical corporations, and discusses their strategic choices for mode of entry in China, geographic location and location within the value chain.

The overview of MIPs in the Chinese petrochemical industry confirms the theoretical expectations of the critical impact of Chinese Government policies. The paper explains the emerging shape of international competition in this sector of the Chinese economy.

The main contributions of this paper are the new conceptual framework for analysis of the drivers for strategic investment choices, the assembly of a database with the top 180 MIPs in the petrochemical industry in China, and the analysis of the relationships between the regional endowments, concentration of value‐chain activities and location choices by multinational firms from different countries of origin. The results demonstrate the factors that drive growth in a knowledge‐, technology‐ and capital‐intensive sector.

The economic boom and liberalization make China a new focus of international investments by multinational corporations (MNCs). How to enter this huge market and what entry mode should be taken, remain inconclusive. This paper is a study of the entry modes of MNCs into China from socioeconomic perspectives. It provides a theoretical discussion and also an empirical investigation of MNCs’ entry modes in the Chinese particular institutional and business environments. It examines the impact of sociocultural differences, the technology intensity of investment projects and regional factors on MNCs’ entry mode choice.

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.

To review the importance of the Chinese cultural phenomenon, guanxi, and the marked difference in both consumer behaviour and management practices between China and the West, all from the perspective of market entry by multinational firms.

General conclusions are drawn and strategic imperatives inferred from a review of the relevant literature and a set of case histories based on personal interviews with key executives in the Chinese operations of six large overseas consumer‐goods companies.

The undoubted strategic significance of guanxi has been diluted recently among joint ventures designated as “encouraged” by the Chinese government, and is being replaced by a market‐driven paradigm of marketing operations. The guanxi‐driven paradigm remains a crucial factor in planning and managing effective working relationships when the Chinese partner is one officially classified as “restricted”. Case histories show that early success is no guarantee of continuing dominance, as indigenous competition intensifies and Chinese corporations become larger and better resourced.

Foreign multinational entrants to the Chinese market must remain sensitive to characteristically Chinese business and consumer behaviour, but can successfully adopt a more Western approach to marketing strategy in certain situations. It is essential to use marketing intelligence effectively, and to plan well beyond the short term.

The authors' expert view of the current situation fro multinationals in China adds a useful extra dimension to the received wisdom.