Multinational Strategies and Developing Countries in Historical Perspective

58 Pages Posted: 11 Mar 2010

See all articles by Geoffrey Gareth Jones

Geoffrey Gareth Jones

Harvard University - General Management Unit

Date Written: March 10, 2010

Abstract

This working paper offers a longitudinal and descriptive analysis of the strategies of multinationals from developed countries in developing countries. The central argument is that strategies were shaped by the trade-off between opportunity and risk. Three broad environmental factors determined the trade-off. The first was the prevailing political economy, including the policies of both host and home governments, and the international legal framework. The second was the market and resources of the host country. The third factor was competition from local firms. The impact of these factors on corporate strategies is explored, as shown in Fig. 1, during the three eras in the modern history of globalization from the nineteenth century until the present day. The performance of specific multinationals depended on the extent to which their internal capabilities enabled them to respond to these external opportunities and threats.

Suggested Citation

Jones, Geoffrey Gareth, Multinational Strategies and Developing Countries in Historical Perspective (March 10, 2010). Harvard Business School Entrepreneurial Management Working Paper No. 10-076, Available at SSRN: https://ssrn.com/abstract=1568086 or http://dx.doi.org/10.2139/ssrn.1568086

Geoffrey Gareth Jones (Contact Author)

Harvard University - General Management Unit ( email )

Boston, MA 02163
United States

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