Open AccessGLOBALIZATION AND THE NEW ENTERPRISE
Author(s) -
Marin Dalia,
Verdier Thierry
Publication year - 2003
Publication title -
journal of the european economic association
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 7.792
H-Index - 93
eISSN - 1542-4774
pISSN - 1542-4766
DOI - 10.1162/154247603322390973
Subject(s) - globalization , volume (thermodynamics) , sociology , management , political science , regional science , library science , economics , computer science , law , physics , quantum mechanics
Globalization has been identified by many experts as a new way firms organize their activities. This paper surveys recent work that examines the role of trade integration between similar and dissimilar countries for these changes in corporate organization. It is shown that international competition and international trade both increase the stakes of the firm that affects the behavior of agents inside the corporation. This way, trade integration leads to waves of outsourcing and to convergence in corporate cultures across countries. (JEL: F12, D23, L1, L2)