China Rules: Globalization and Political Transformation
The development of the Chinese MNC is a new feature of globalization, one that will undoubtedly change the world. Why Chinese firms internationalize, how they do so, and what the impact of their internationalization on developed markets will be are the foci of this book.
developmental states are more and more difficult in today’s knowledge economy (or what some others are calling the “new economy”). From the 1960s to the 1980s Japan and other newly industrialized East Asian countries adopted the “imitation to innovation” approach to catching up with the industrialized countries. For the last two decades China has followed the East Asian developmental model, particularly that of Japan and South Korea. What characterizes this model is the proactive role played by a
once with the risk of failure caused by the handicaps they face in other activities or the fact that their limited resources would be spread too thin. This tends to undermine the Chinese multinationals’ competitive traction. Intangible assets The final factor that impedes the advance of Chinese competition is the importance of intangible assets, such as brands or proprietary technology and experience that are slow and costly to build. Where these assets are critical to competitive success,
using organizational processes, to effect a desired end” (p. 35). Competence is used as a general term for resources, capabilities and competences as defined by various authors. Given their wide acceptance, however, use terms “vector of capabilities,” “combinative,” and “dynamic capabilities.” 2. Emerging Economies are Climbing Back. The Economist, January 21, 2006, 71–72. References Amit, R. & Schoemaker, P. J. H. 1993. Strategic assets and organisational rent. Strategic Management
distant. Broadman (1999) belongs to the first group. He is a practitioner who was a senior economist at the World Bank (China Operation) from 1993 to 1997. He recognizes the shortcomings of the present system and very pragmatically acknowledges the challenge facing the government in its reform endeavors. That said, he proposes a comprehensive policy agenda which includes, among other measures, the further reduction of state subsidies, the creation of a policy framework for creditors to exercise
total Chinese inward FDI in terms of realized value. This relatively strong FDI position in the early 1980s was related to a number of leading European multinational enterprises (MNEs) setting up large-scale manufacturing subsidiaries through joint venture (JV) agreements, such as Pharmacia (US $6 million in 1982), Alcatel-Bell (US $39.5 million in 1983), and Pilkington (US $29.9 million in 1983), and several EU15 chemical companies, notably BP and Elf participating in large joint exploration