Globalization and the 'New Enterprise'

Marin, Dalia; Verdier, Thierry

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Globalization and the 'New Enterprise'

Journal of the European Economic Association, Vol. 1, No. 2-3, pp. 337-344, May 2003

14 Pages Posted: 16 Jan 2009

See all articles by Dalia Marin

Dalia Marin

Ludwig Maximilian University of Munich (LMU) - Faculty of Economics; CESifo (Center for Economic Studies and Ifo Institute); Centre for Economic Policy Research (CEPR)

Thierry Verdier

Paris School of Economics (PSE); Pontifical Catholic University of Rio de Janeiro (PUC-Rio) - Department of Economics; Centre for Economic Policy Research (CEPR)

There are 2 versions of this paper

Date Written: 2003

Abstract

Globalization has been identified by many experts as a new way firms organize their activities and as the emergence of human capital as the new stakeholder of the firm. This paper surveys recent work which examines the role of trade integration for these changes in corporate organization. More intense competition and the change in the pattern of specialization following trade liberalization make it both more likely that an organizational equilibrium emerges in which power is delegated to lower levels of the firms' hierarchy empowering human capital. Furthermore, trade integration leads to waves of outsourcing and to a convergence in corporate cultures across countries.

Keywords: international trade with imperfect competition, corporate governance, theory of the firm, empowerment, outsourcing

JEL Classification: F12, D23, L1, L2

Suggested Citation: Suggested Citation

Marin, Dalia and Verdier, Thierry, Globalization and the 'New Enterprise' (2003). Journal of the European Economic Association, Vol. 1, No. 2-3, pp. 337-344, May 2003, Available at SSRN: https://ssrn.com/abstract=1328371