The Impact of Economic Nationalism on MNEs From Smaller Developing Economies

Abstract

The chapter provides a conceptual framework for consideration for decision makers in firms from smaller developing economies during an era of increased economic nationalistic rhetoric in developed economies and shifting global trade patterns. Talking a longer term view, one might see this current level of political rhetoric as a continuation of the contest between globalization and free market ideology against viewpoints associated with mercantilism and other forms of economic nationalism. The impact of these trends on strategies of firms from developing economies within global value chains is explored. There are three basic strategic suggestions for firms from smaller developing countries which are interested in expanding internationally within the framework of operating within a global value chain.