Business History: Globalism History

28 Results

 

An Economic Principle For Us All: Comparative Advantage

In an update to his popular A Concise Guide to Macroeconomics, David Moss explains how the state of the macro economy affects managers, executives, students—and all the rest of us. In this excerpt, Moss illuminates David Ricardo's theory of comparative advantage. Open for comment; 0 Comments posted.

Entrepreneurship and Multinationals Drive Globalization

Why is the firm overlooked as a contributor when we identify the drivers of globalization? Geoffrey Jones discusses his new book, Entrepreneurship and Multinationals: Global Business and the Making of the Modern World. Open for comment; 1 Comment posted.

Tommy Koh: Background and Major Accomplishments of the ’Great Negotiator, 2014

Tommy Koh is a diplomat, professor, and international lawyer currently serving as Ambassador-at-Large for the Government of Singapore. He will be the 2014 recipient of the Harvard Program on Negotiation's "Great Negotiator Award." In this paper, the authors discuss Koh's life, career, and major accomplishments as a negotiator. They summarize several of his most significant negotiations to date, exploring his successes at forging creative, lasting solutions to complex challenges and disputes. The authors discuss Koh's leadership in establishing the United States-Singapore Free Trade Agreement (USSFTA), developing and ratifying a charter for the Association of Southeast Asian Nations (ASEAN), resolving territorial and humanitarian disputes in the Baltics and Asia, and successfully leading two unprecedented global megaconferences: the Third U.N. Conference on the Law of the Sea and the U.N. Conference on the Environment and Development, also known as the Earth Summit. As part of the 2014 Great Negotiator Awards program, negotiation faculty and students will analyze several of these experiences in much greater depth in order to extract their most valuable lessons for theory and practice. Read More

China’s 60-Year Road from Revolution to World Power

In a new book, The People's Republic of China at 60: An International Assessment, HBS professor William C. Kirby discusses common assumptions about pre-revolutionary China and its development into an economic power. Read More

Panama Canal: Troubled History, Astounding Turnaround

In their new book, The Big Ditch, Harvard Business School professor Noel Maurer and economic historian Carlos Yu discuss the complicated history of the Panama Canal and its remarkable turnaround after Panama took control in 1999. Q&A with Maurer, plus book excerpt. Closed for comment; 5 Comments posted.

The Drive to Acquire’s Impact on Globalization

Humans have evolved four priorities or "drives," according to HBS professor emeritus Paul R. Lawrence: the drive to acquire, to defend, to bond, and to comprehend. In an excerpt from his new book, Driven to Lead: Good, Bad, and Misguided Leadership, Lawrence describes how the four drives impact globalization. Read More

Foreign Entry and the Mexican Banking System, 1997-2007

What are the effects of foreign bank entry in developing economies? In recent years, governments around the world have been opening up their banking systems to foreign competition. In Mexico, for example, the market share of foreign ownership of banks increased fivefold between 1997 and 2007. In this paper, Stanford professor Stephen Haber and HBS professor Aldo Musacchio describe their detailed study of the impact of foreign entry in Mexico during that period. Overall, results suggest that while foreign entry in Mexico is associated with greater stability of the banking system, it has not increased the availability of credit, and foreign entry is not a solution to a property rights environment that makes contract enforcement costly. Read More

Multinational Strategies and Developing Countries in Historical Perspective

HBS professor Geoffrey Jones offers a historical analysis of the strategies of multinationals from developed countries in developing countries. His central argument, that strategies were shaped by the trade-off between opportunity and risk, highlights how 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 was competition from local firms. Jones explores the impact of these factors on corporate strategies during the three eras in the modern history of globalization from the nineteenth century until the present day. He argues that the performance of specific multinationals depended on the extent to which their internal capabilities enabled them to respond to these external opportunities and threats. The paper highlights in particular the changing nature of political risk faced by multinationals. The era of expropriation has, for the moment, largely passed, but multinationals now experience new kinds of policy risk, and new forms of home country political risk also, such as the Alien Tort Claims Act in the United States. Read More

The End of Chimerica

For the better part of the past decade, the world economy has been dominated by a unique geoeconomic constellation that the authors call "Chimerica": a world economic order that combined Chinese export-led development with U.S. overconsumption on the basis of a financial marriage between the world's sole superpower and its most likely future rival. For China, the key attraction of the relationship was its potential to propel the Chinese economy forward by means of export-led growth. For the United States, Chimerica meant being able to consume more, save less, and still maintain low interest rates and a stable rate of investment. Yet, like many another marriage between a saver and a spender, Chimerica was not destined to last. In this paper, economic historians Niall Ferguson of HBS and Moritz Schularick of Freie Universitšt Berlin consider the problem of global imbalances and try to set events in a longer-term perspective. Read More

India Transformed? Insights from the Firm Level 1988-2005

Between 1986 and 2005, Indian growth put to rest the concern that there was something about the "nature of India" that made rapid growth difficult. Following broad-ranging reforms in the mid-1980s and early 1990s, the state deregulated entry, both domestic and foreign, in many industries, and also hugely reduced barriers to trade. Laura Alfaro of Harvard Business School and Anusha Chari of the University of North Carolina at Chapel Hill analyze the evolution of India's industrial structure at the firm level following the reforms. Despite the substantial increase in the number of private and foreign firms, the overall pattern that emerges is one of continued incumbent dominance in terms of assets, sales, and profits in both state-owned and traditional private firms. Read More

Business Summit: Historical Roots of Globalization

In this breakout session, panelists shared insights, informed by history, of the convergence that globalization promotes. Read More

Business Summit: Niall Ferguson and the Certainty of Uncertainty

The economic crisis should not have been unexpected, says professor Niall Ferguson. Business leaders should consider history when developing their strategies, plans, and models, and should keep in mind that outlier events occur. Read More

Accountability and Inequality in Single-Party Regimes: A Comparative Analysis of Vietnam and China

While both China and Vietnam have experienced rapid annual growth over the past two decades, income inequality has risen more rapidly in China than in Vietnam during the same period. Structural and socio-cultural determinants fail to account for these divergent paths, as nearly every variable predicts higher inequality in Vietnam. This paper by Regina Abrami and colleagues focuses on differences in political institutions to explain these divergent paths. In so doing, it contributes to a growing body of literature describing variation in authoritarian regimes, but focuses on variation within one authoritarian regime type. Read More

Colonial Land Tenure, Electoral Competition and Public Goods in India

How is the impact of historical institutions felt today? This comparative analysis by Banerjee and Iyer highlights the impact of a specific historical institution on long-term development, specifically the land tenure systems instituted during British colonial rule. The paper compares the long-term development outcomes between areas where controls rights in land were historically given to a few landlords and areas where such rights were more broadly distributed. The paper also documents the impact of these differing historical institutions on political participation and electoral competition in the post-colonial period. Read More

Do Legal Origins Have Persistent Effects Over Time? A Look at Law and Finance around the World c. 1900

A significant number of recent papers find legal origins to be strongly correlated with current indices of rule of law, financial development, the regulation of entry and labor, and the concentration of ownership, among other things. Few studies, however, have explored whether correlations between institutions and economic and financial outcomes hold in the past. For this reason, we cannot be certain that the alleged persistence of the effects of these institutions passes the scrutiny of history. This paper examines specifically the relationship between legal origins and financial development by analyzing countries' legal traditions and the extent of investor protections and financial development over time. Read More

Capital Rules: The Tensions of Global Finance

With the start of the new decade, most global financial powers are rethinking a previously powerful trend toward liberalizing global finance. In his new book Capital Rules, Professor Rawi Abdelal charts the intellectual, legal, and political history of financial globalization, and the tensions facing today's world economy. Read an excerpt. Read More

Cartels and Competition: Neither Markets nor Hierarchies

Before 1945, many thinkers believed cartels brought widespread benefits. But following the spread of antitrust ideas after 1945, Adam Smith's verdict on cartels as "conspiracies against the public" prevailed. The cartel question highlights important issues about the benefits and risks of competition. This working paper maintains that, for better or worse, cartels have shaped economic and business history since the late nineteenth century. Big business must recognize how, up until the 1980s, the activities and influence of cartels affected technological development, corporate strategy, and organizational change. Read More

How Europe Wrote the Rules of Global Finance

Following decades of liberalization, controls on cross-border capital movements are again being discussed by financial institutions, governments, and policymakers around the globe. Professor Rawi Abdelal discusses implications and the historical roles of Europe and the United States in promoting the flow of capital across national borders. Read More

Managing Governments: Unilever in India and Turkey, 1950–1980

During the postwar decades, consumer-products giant Unilever survived and even thrived in developing countries such as India and Turkey even as business conditions discouraged or drove away peer companies. Why? At least five factors explain Unilever's ability and willingness to persist in such developing countries. These factors may also explain why foreign direct investment shrank to low levels in these countries, and has remained low. Read More

Globalizing the Beauty Business Before 1980

Even six-month-old infants may understand what makes faces "attractive," regardless of ethnicity, but adults vary considerably in how they present themselves through clothes, hairstyles, and physical appearance. Studying the period from 1945 to 1980, this paper examines the drivers of the globalization of beauty; the strategies that firms employed to overcome challenges to globalization; and the outcomes, including the level to which globalization has brought about a homogenization of beauty ideals and practices. Read More

Nationality and Multinationals in Historical Perspective

Many people believe that globalization has caused companies to lose their national identity. This study traces the history of corporations and nationality and finds that multinational companies have always had ambiguities, particularly before World War I. National subsidiaries became stronger in the twentieth century, and companies like Ford, for example, would feel very American in the United States, but have a more local identity in another part of the world. In the twenty-first century, globalization has caused a reemergence of issues concerning corporate nationality. However, this research shows that in many ways corporate affiliation with a country may matter more than ever. Read More

What Roosevelt Took: The Economic Impact of the Panama Canal, 1903-29

The Panama Canal was expected to bring great economic benefits to the people of Panama. Instead, the United States received most of the benefits. This was a deliberate act on the part of the U.S. The U.S. didn't allow Panamanian businesses to sell goods or services in the Canal Zone, it avoided the employment of Panamanian workers, and it used its military leverage to force Panama into accepting a low payment for the Canal territory. Read More

Restoring a Global Economy, 1950–1980

In his recent book Multinationals and Global Capitalism, professor Geoffrey Jones dissects the influence of multinationals on the world economy. This excerpt recalls the rebuilding of the global economy following World War II. Read More

Bringing History into International Business

International Business scholars often talk about history, but rarely take it seriously. The first generation of International Business scholars placed a high priority on evolutionary and historical perspectives and methodology, but little work these days grapples with the history of International Business or uses historical data to explore an issue. Jones and Khanna discuss new avenues for researching business groups in history and in contemporary emerging markets, resource-based and path-dependent theories of the firm, and foreign direct investment and development over time. Read More

Business History around the World

One way to understand management trends and ideas today is to look at yesterday. HBS entrepreneurship professor Geoffrey G. Jones and co-editor Franco Amatori have done just that with their new book, Business History around the World. Read More

How Business Strategy Tamed the “Invisible Hand”

Theories of competition and strategic planning are essential ingredients in running a global business. In this excerpt from Business History Review, HBS professor Pankaj Ghemawat outlines their development. Read More

George C. Lodge

Whether the subject is Third-World development or national competitiveness, George Lodge, Jaime and Josefina Chua Tiampo Professor of Business Administration, Emeritus, has exercised his talent for seeing the big picture in a prolific outpouring of books, cases, and articles. Read More

Merchants to Multinationals: British Trading Companies in the Nineteenth and Twentieth Centuries

It was a business world defined by globalization and growing interdependency. But it's not international trade circa 2000. As HBS professor Geoffrey Jones points out, the "global economy" first emerged in the 1870s. Read More