Introduction: The Changing Geography of International Business

Abstract

The theme for the AIB (UK&I) 2012 Conference was New Global Developments and the Changing Geography of International Business. This theme had two distinct, but interconnected motivations. First, the world economic order has changed markedly over recent years, epitomized by the rapid growth of China, on course to become the largest economy in the world in the near future and exerting increasing influence through its overseas ventures. Several other countries have experienced rapid rates of growth, including some other populous countries such as India and Indonesia. These countries have caused demonstrable anxiety in the West on several grounds, some of which are redolent of fears which arose with the emergence of Japan as a significant economic power. There are concerns regarding the ability of Western companies to compete with aggressive, low-costs MNEs from emerging economies. These fears are compounded by the spectre of jobs being exported to such regions as Western MNEs are compelled to locate in emerging economies to maintain competitiveness in the face of this heightened competition. There are also fears of threats to economic and political influence, exemplified by concerns regarding the increasing indebtedness of the United States to China. Moreover, as governments in developed economies generally struggle with the aftermath of the financial crisis and burgeoning fiscal deficits, greater reliance is being placed on emerging economies as motors of the global economy.