Skip to main content
SpringerLink
Log in
Book cover

Transnational Corporations and Transnational Governance pp 1–21Cite as

Palgrave Macmillan

The Costs of Crossing Borders in the Global Economy

  • Chapter

  • 425 Accesses

Abstract

‘“Transnationalism” is a term which suffers from being “in” in social science’ (Huntington, 1973, p. 334). Although this opening quote is from 40 years ago, it could just as well have appeared in a publication this year. It was written in the aftermath of a global energy crisis, when there was a need to redefine the role of some of the key actors and their relative position in the global (political) system. Transnationalism continues to be popular in the social sciences, at least in part because four decades of globalization have resulted in a world economy that presents a mixture of public and private governance, where new actors continue to emerge, but where state borders still matter. In this context, transnational organizations and transnational corporations (TNCs), in particular, continue to exert a powerful influence on the world economy, but the world economy they are operating in is in some important ways quite different from the economy that was shaping up in the 1970s.

This chapter has been adapted from ZenTra Working Paper in Transnational Studies No. 34 / 2014.

This is a preview of subscription content, log in via an institution.

Chapter
USD   29.95
Price excludes VAT (USA)
  • Available as PDF
  • Read on any device
  • Instant download
  • Own it forever
eBook
USD   84.99
Price excludes VAT (USA)
  • Available as EPUB and PDF
  • Read on any device
  • Instant download
  • Own it forever
Softcover Book
USD   109.99
Price excludes VAT (USA)
  • Compact, lightweight edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info
Hardcover Book
USD   109.99
Price excludes VAT (USA)
  • Durable hardcover edition
  • Dispatched in 3 to 5 business days
  • Free shipping worldwide - see info

Tax calculation will be finalised at checkout

Purchases are for personal use only

Learn about institutional subscriptions

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  • Abbott, K. W. & Snidal, D. (2013). Taking responsive regulation transnational: Strategies for international organizations. Regulation & Governance, 7(1), 95–113.

    Article  Google Scholar 

  • Albanese, J. S. (2012). Deciphering the linkages between organized crime and transnational crime. Journal of International Affairs, 66(1), 1–16.

    Article  Google Scholar 

  • Anderson, C. W., Fedenia, M., Hirschey, M. & Skiba, H. (2011). Cultural influences on home bias and international diversification by institutional investors. Journal of Banking and Finance, 35(4), 916–34.

    Article  Google Scholar 

  • Baldwin, R. (2006). Globalisation: The Great Unbundling(s). Helsinki: Prime Minister’s Office.

    Google Scholar 

  • Bartlett, C. A. & Ghoshal, S. (1989). Managing Across Borders: The Transnational Solution. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Beugelsdijk, S. & Mudambi, R. (2013). MNEs as border-crossing multi-location enterprises: The role of discontinuities in geographic space: Editorial. Journal of International Business Studies, 44(5), 413–26.

    Article  Google Scholar 

  • Bevan, A. A. & Estrin, S. (2004). The determinants of foreign direct investment into European transition economies. Journal of Comparative Economics, 32(4), 775–87.

    Article  Google Scholar 

  • Boddewyn, J. & Doh, J. (2011). Global strategy and the collaboration of MNEs, NGOs, and governments for the provisioning of collective goods in emerging markets. Global Strategy Journal, 1(3–4), 345–61.

    Article  Google Scholar 

  • Buckley, P. J. (2011). International integration and coordination in the global factory. Management International Review, 51(2), 269–83.

    Article  Google Scholar 

  • Buckley, P. J. & Casson, M. C. (1976). The Future of the Multinational Enterprise. London: Macmillan.

    Google Scholar 

  • Calliess, G.-P. & Zumbansen, P. (2010). Rough Consensus and Running Code: A Theory of Transnational Private Law. Oxford: Hart.

    Google Scholar 

  • Campbell, J. T., Eden, L. & Miller, S. R. (2012). Multinationals and corporate social responsibility in host countries: Does distance matter? Journal of International Business Studies, 43(1), 84–106.

    Article  Google Scholar 

  • Cantwell, J., Dunning, J. H. & Lundan, S. M. (2010). An evolutionary approach to understanding international business activity: The co-evolution of MNEs and the institutional environment. Journal of International Business Studies, 41(4), 567–86.

    Article  Google Scholar 

  • Collinson, S. & Rugman, A. M. (2008). The regional nature of Japanese multinational business. Journal of International Business Studies, 39(2), 215–30.

    Article  Google Scholar 

  • Cuervo-Cazurra, A. (2006). Who cares about corruption? Journal of International Business Studies, 37(6), 807–22.

    Article  Google Scholar 

  • Cusumano, M. A. & Takeishi, A. (1991). Supplier relations and management: A survey of Japanese, Japanese-transplant, and U.S. auto plants. Strategic Management Journal, 12(8), 563–88.

    Article  Google Scholar 

  • Dunning, J. H. & Lundan, S. M. (2008a). Institutions and the OLI paradigm of the multinational enterprise. Asia Pacific Journal of Management, 25(4), 573–93.

    Article  Google Scholar 

  • Dunning, J. H. & Lundan, S. M. (2008b). Multinational Enterprises and the Global Economy. Cheltenham: Edward Elgar.

    Google Scholar 

  • Dunning, J. H. & Lundan, S. M. (2010). The institutional origins of dynamic capabilities in multinational enterprises. Industrial and Corporate Change, 19(4), 1225–46.

    Article  Google Scholar 

  • Dunning, J. H. & Lundan, S. M. (2011). The changing political economy of foreign investment: Finding a balance between hard and soft forms of regulation. In: J. E. Alvarez & K. P. Sauvant (Eds.), The Evolving International Investment Regime: Expectations, Realities, Options (pp. 125–52). New York: Oxford University Press.

    Chapter  Google Scholar 

  • Eden, L. & Miller, S. R. (2004). Distance matters: Liability of foreignness, institutional distance and ownership strategy. Advances in International Management, 16, 187–221.

    Article  Google Scholar 

  • Egger, P. & Pfaffermayr, M. (2004). Foreign direct investment and European integration in the 1990s. World Economy, 27(1), 99–110.

    Article  Google Scholar 

  • Ghemawat, P. (2003). Semiglobalization and international business strategy. Journal of International Business Studies, 34(2), 138–51.

    Article  Google Scholar 

  • Ghemawat, P. (2007). Redefining Global Strategy: Crossing Borders in a World Where Differences Still Matter. Boston, MA: Harvard Business School Press.

    Google Scholar 

  • Ghemawat, P. (2011). World 3.0: Global Prosperity and How to Achieve It. Cambridge, MA: Harvard Business Review Press.

    Google Scholar 

  • Grosse, R. (2005). The bargaining view of business-government relations. In: R. Grosse (Ed.), International Business and Government Relations in the 21st Century (pp. 273–90). Cambridge: Cambridge University Press.

    Google Scholar 

  • Hennart, J.-F. & Reddy, S. (1997). The choice between mergers/acquisitions and joint ventures: The case of Japanese investors in the United States. Strategic Management Journal, 18(1), 1–12.

    Article  Google Scholar 

  • Hofstede, G. (2001). Culture’s Consequences: Comparing Values, Behaviors, Institutions and Organizations Across Nations. Thousand Oaks, CA: Sage.

    Google Scholar 

  • Huntington, S. P. (1973). Transnational organizations in world politics. World Politics, 25(3), 333–68.

    Article  Google Scholar 

  • Hymer, S. H. (1976). The International Operations of Hational Firms. Lexington, MA: Lexington Books.

    Google Scholar 

  • Inglehart, R., Basáñez, M., Díez-Medrano, J., Halman, L. & Luijkx, R. (2004). Human Beliefs and Values. Mexico City: Siglo XXI Editores.

    Google Scholar 

  • Johanson, J. & Vahlne, J.-E. (1977). The internationalization process of the firm — A model of knowledge development and increasing foreign market commitments. Journal of International Business Studies, 8(1), 23–32.

    Article  Google Scholar 

  • Johanson, J. & Vahlne, J.-E. (1990). The mechanism of internationalisation. International Marketing Review, 7(4), 11–24.

    Article  Google Scholar 

  • Jones, G. (2004). Multinationals and Global Capitalism: From the Nineteenth to the Twenty First Century. New York: Oxford University Press.

    Book  Google Scholar 

  • Kaufmann, D., Kraay, A. & Zoido-Lobaton, P. (1999). Governance Matters. Washington, DC: World Bank, Policy Research Working Paper 2196.

    Google Scholar 

  • Kogut, B. & Singh, H. (1988). The effect of national culture on the choice of entry mode. Journal of International Business Studies, 19(3), 411–32.

    Article  Google Scholar 

  • Koschate-Fischer, N., Diamantopoulos, A. & Oldenkotte, K. (2012). Are consumers really willing to pay more for a favorable country image? A study of country-of-origin effects on willingness to pay. Journal of International Marketing, 20(1), 19–41.

    Article  Google Scholar 

  • Leblang, D. (2010). Familiarity breeds investment: Diaspora networks and international investment. American Political Science Review, 104(3), 584–600.

    Article  Google Scholar 

  • Lundan, S. M. (2011). An institutional perspective on the social responsibility of TNCs. Transnational Corporations, 20(3), 61–77.

    Google Scholar 

  • Lundan, S. M. (2013). Regulating global corporate capitalism. In: J. Mikler (Ed.), The Handbook of Global Companies (pp. 241–56). Chichester: Wiley-Blackwell.

    Chapter  Google Scholar 

  • Makino, S. & Neupert, K. E. (2000). National culture, transaction costs, and the choice between joint venture and wholly owned subsidiary. Journal of International Business Studies, 31(4), 705–13.

    Article  Google Scholar 

  • McIlroy, J. & Croucher, R. (2013). The turn to transnational labor history and the study of global trade unionism. Labor History, 54(5), 491–511.

    Article  Google Scholar 

  • Ohmae, K. (1990). The Borderless World. New York: Harper Business.

    Google Scholar 

  • Rašković, M., Brenčič, M. M. & Jaklič, M. (2013). Antecedents and evolution of the Bartlett and Ghoshal transnational typology. Multinational Business Review, 21(2), 148–73.

    Article  Google Scholar 

  • Rugman, A. M. (2001). The End of Globalization. London: Random House.

    Google Scholar 

  • Rugman, A. M. & Verbeke, A. (2004). A perspective on regional and global strategies of multinational enterprises. Journal of International Business Studies, 35(1), 3–18.

    Article  Google Scholar 

  • Shenkar, O., Luo, Y. & Yeheskel, O. (2008). From “distance” to “friction”: Substituting metaphors and redirecting intercultural research. Academy of Management Review, 33(4), 905–23.

    Article  Google Scholar 

  • Tung, R. L. & Verbeke, A. (2010). Beyond Hofstede and GLOBE: Improving the quality of cross-cultural research. Journal of International Business Studies, 41(8), 1259–74.

    Article  Google Scholar 

  • UNCTAD (2013). Global Value Chains: Investment and Trade for Development. New York and Geneva: United Nations Conference on Trade and Development, World Investment Report 2013.

    Google Scholar 

  • Verlegh, P. W. J. (2007). Home country bias in product evaluation: The complementary roles of economic and socio-psychological motives. Journal of International Business Studies, 38(3), 361–73.

    Article  Google Scholar 

  • Westney, D. E. (2001). Japan. In: A. M. Rugman & T. Brewer (Eds.), The Oxford Handbook of International Business (pp. 623–51). Oxford: Oxford University Press.

    Chapter  Google Scholar 

  • Williamson, O. E. (1975). Markets and Hierarchies: Analysis and Antitrust Implications. London: Collier Macmillan Publishers.

    Google Scholar 

  • Williamson, O. E. (2000). The new institutional economics: Taking stock, looking ahead. Journal of Economic Literature, 38(3), 595–613.

    Article  Google Scholar 

  • Xu, D. & Shenkar, O. (2002). Institutional distance and the multinational enterprise. Academy of Management Review, 27(4), 608–18.

    Google Scholar 

  • Zaheer, S. (1995). Overcoming the liability of foreignness. Academy of Management Journal, 38(2), 341–63.

    Article  Google Scholar 

Download references

Authors
  1. Sarianna Lundan
    View author publications

    You can also search for this author in PubMed Google Scholar

Editor information

Editors and Affiliations

  1. University of Bremen, Germany

    Sarianna Lundan

Copyright information

© 2015 Sarianna Lundan

About this chapter

Cite this chapter

Lundan, S. (2015). The Costs of Crossing Borders in the Global Economy. In: Lundan, S. (eds) Transnational Corporations and Transnational Governance. Palgrave Macmillan, London. https://doi.org/10.1057/9781137467690_1

Download citation

Publish with us

Policies and ethics

Search

Navigation