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Mobilizing Against the Antiglobalization Backlash: An Integrated Framework for Corporate Nonmarket Strategy

Published online by Cambridge University Press:  05 October 2020

Louise Curran Open the ORCID record for Louise Curran [Opens in a new window]  and
Jappe Eckhardt
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Abstract

In the aftermath of the Global Financial Crisis and, more recently, the COVID-19 pandemic, scepticism on the merits of trade and globalization has increased across several key developed countries. This poses major challenges for multinational enterprises (MNEs) and other trade dependent firms (TDFs). This paper develops a framework to explore corporate nonmarket strategies (NMS) to address this backlash, covering both corporate political activity (CPA) and corporate social responsibility (CSR). We firstly provide an overview of the existing research within international economics, business strategy, and international political economy on the antiglobalization backlash and MNEs/TDFs strategy in the face of protectionism. Building on this scholarship, we formulate propositions for CPA and CSR actions, which are likely to be deployed by TDFs in developed economies to counter protectionism and address the criticisms of the antiglobalization movement. On this basis we propose an interdisciplinary analytical framework that can be used to study corporate strategy in times of growing antitrade sentiments. Finally, we provide initial proposals for testing these propositions and highlight the challenges researchers may face when carrying out such research.

Keywords

globalizationprotectionismnonmarket strategytrade dependent firms
Type
Research Article
Information
Business and Politics , Volume 22 , Special Issue 4: Multinational Corporations and the Politics of International Trade , December 2020 , pp. 612 - 638
Copyright
Copyright © The Author(s), 2020. Published by Cambridge University Press on behalf of V.K. Aggarwal

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