Asian Business & Management

, Volume 9, Issue 3, pp 299–317

Globalization, regional multinationals and Asian economic development

  • Alan M Rugman
Original Article

Abstract

We here analyze the work of Thomas Friedman on globalization and then build on a reinterpretation of Friedman to show that today there are two competing models used in analysis of multinationals and development. The traditional Model A is a matrix with the multinational enterprise and its firm-specific advantages (FSAs) on one axis; on the other axis are country factors, called country-specific advantages (CSAs). The traditional method of incorporating social issues and government policy is on the CSA axis. Model B, on the other hand, emphasizes stakeholders. It can best be represented by a triangle comprising markets-states-society. We show here that Model A can be reworked to include the three cases of Model B and apply this thinking to empirical work on multinationals from emerging economies of Asia.

Keywords

globalization multinational enterprises development models country-specific advantages Asian emerging economies firm-specific advantages 

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Copyright information

© Palgrave Macmillan, a division of Macmillan Publishers Ltd 2010

Authors and Affiliations

  • Alan M Rugman
    • 1
  1. 1.Henley Business School, University of Reading Henley-on-ThamesOxonUK

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