Critical Business Asset for Strategic Global Change
Chapter Eight: Political Opportunities and Risks Within and Across Borders
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Political Opportunities and Risks Within and Across Borders
This chapter investigates the challenges that an environment with fewer restrictions and more globally complex supply chains presents to corporate business strategies. This environment for services, intangibles, and intellectual property presents political opportunities for corporations as well as risks. The chapter will analyze the opportunities and risks that are offered in six functional areas: (1) sustainability—the triple bottom line—social, financial, environmental performance; (2) the supply chain; (3) advertising and marketing; (4) accounting; (5) responsible investing, and (6) ethical business practices.
In the first decade of the 21st century, a more truly global marketplace was created than had existed at any time since the decade preceding the First World War. Notwithstanding some reversals of this trend created by the global recession that began in 2008, the global marketplace created through the emergence of countries such as Brazil, Russia, India, and China has transformed the nature of global relations for multinational companies. There have been two principal drivers for this transformation.
The first is the removal of regulatory barriers controlling foreign ownership of business assets in countries such as India and a parallel reduction in subsidies or protections for home-grown “industry champions.”
The second is the development of truly global supply chains involving wholly owned and wholly outsourced operations. The combined power of these two shifts has brought about the decline of global corporate infrastructures based on having...
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