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Global Cincinnati: South-Western Cengage Learning [Sample in pdf format: Global Strategy, 2nd edition Cincinnati: Overall, when industry- and resource-based weapons fail, there is a direct implication for domestic firms under competitive pressures from imports: launch an institution-based missile by filing an antidumping petition Schuler et al.
It is thus not surprising that antidumping cases have now proliferated throughout the world. Although the US and the EU have initiated the largest number of cases which is not surprising, given that these two regions are the largest importers , what is somewhat surprising is that actually a number of emerging economies on per dollar of imports are the most eager practitioners of setting up antidumping barriers.
In the 21st century, as tariff barriers are no longer tolerated in most parts of the world, nontariff barriers such as antidumping regimes become increasingly important Schuler et al. Overall, there is a great deal of strategizing on both sides through dumping, antidumping, and tariff-jumping strategies.
The upshot is that IB strategy research, especially the literature concerning foreign market entry, needs to pay more attention to antidumping as entry barriers, which result in an institution-based liability of foreignness.
Political, legal, and societal changes in India affect strategies of Indian and non-Indian firms when competing in and out of India.
While these answers are certainly insightful, they do not paint a complete picture.
An institution-based answer, among other factors, would point to political, legal, and societal changes in institutions. Beyond India, the larger international environment in favor of globalization in the s also helped.
However, as the political winds change, the phenomenal success of some Indian firms has more recently been under attack in the West, both formally and informally. Formally, in order to protect jobs, a number of American states have recently started to pass laws to ban Indian firms from being awarded official contracts.
Informally, the backlash is more widespread. Facing the prospects of significant job losses, numerous politicians, journalists, union activists, and displaced employees in developed economies are unhappy and demand protectionist actions.
While these competitive interactions are certainly influenced by industry- and resource-based considerations, they are, no doubt, enabled by the market-opening reforms of the Indian government. From an institution-based standpoint, often left unacknowledged are the policies that encourage outward FDI by Western governments. In other words, the era of relatively unrestricted outbound FDI has been with us for only approximately three decades.
Such market-supporting institutions may be invisible, but they certainly exist and assert a positive role in facilitating FDI strategies of Western MNEs.
In theory, sufficiently strong political pressures in the West such as concerns about job losses allegedly attributable to outbound FDI can lead to a reversal of such pro-outbound FDI policies — although this does not seem likely in practice in the near future. In other words, institutions both enable and constrain IB. Moreover, such institutions are not static. Growing the Firm in China It is long established that strong economic growth can hardly occur in poorly regulated economies.
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