Bringing the state back in: India’s 2015 model BIT

India’s new model BIT reflects a shift toward governing the conduct of foreign investors, and away from mere protection. The author considers how changes in the 2015 Model serve to reinforce the role of the state, and notes key challenges that may arise in practice

聚焦印度2015年双边投资条约

India’s new model BIT reflects a shift toward governing the conduct of foreign investors, and away from mere protection. The author considers how changes in the 2015 Model serve to reinforce the role of the state, and notes key challenges that may arise in practice

The role of international anti-corruption regulations in promoting socially responsible practices.

We analyze how international anti-corruption rules impact the behavior of multinational firms in promoting sustainable practices. Competition from multinational firms is expected to lower bribe rents and hence corruption in host countries. However, we argue that the competition between domestic and multinational firms is unequal as (only) the latter face greater monitoring and sanction through international anti-corruption regulations. We develop a game theoretic model of bribing to examine the strategic response of firms under conditions of unequal competition. We show that under certain conditions the bribing probability of domestic firms increases when multinational firms facing greater penalties refrain from bribing. We use an agent-based simulation to analyze industries with heterogeneous firms, showing that the optimal strategies converge to the Nash equilibrium, and identify the major drivers of profitability and bribing

Geopolitics in international business : challenges and insights

In the current geopolitical context, multinational corporations (MNCs) face a high level of uncertainty and volatility while trying to navigate a changing landscape. This AIB Insights special issue aims to provide the first steps towards articulating novel and actionable insights to guide MNCs as they interact with a rapidly shifting geopolitical environment. Our introductory editorial to the issue first briefly introduces the topic of geopolitics and international business in the current global environment. It then surveys the issue’s five articles. Given current international circumstances, many of the articles revolve around themes of war and peace, but the lessons derived are applicable to any manner of geopolitical risks

International investment regimes: De jure policies, de facto practices and MNC strategic choices

This dissertation addresses the adoption and development of effective property rights regimes in the global system of countries and the influence of these regimes on multinational corporations\u27 (MNCs) investment choices. I argue that formal property rights regimes and de facto practices adopted by a country are influenced by those of other countries within the global system even in the presence of decoupling (i.e. the divergence of de facto practices from de jure policies). Further, location choices of MNCs are influenced by the development of effective property rights regimes in host countries while firm level characteristics alter their sensitivity to these regimes. I present evidence from three related empirical studies. Chapter 2 establishes the interdependent nature of policy adoption in a dyadic context by observing the signing of Bilateral Investment Treaties (BITs). Domestic factors as well as international diffusion pressures of competition and emulation explain patterns of BIT signing while their relative impacts shift between early periods of policy innovation and later periods of policy institutionalization. Chapter 3 confirms the persistence of global diffusion pressures after adoption through an examination of Intellectual Property protection in countries around the world. De facto practices of a country are also influenced by the practices of other countries in the global system. In addition, the international pressures influencing policy adoption have a lasting effect and alter subsequent behavior of domestic constituents. Chapter 4 studies the location choices of MNCs in the information services industry to establish the dependence of firms\u27 location choices on the development of a host country\u27s property rights regimes. Observed patterns of MNC location choices may be explained by the current and expected future de facto property rights protection. This relationship is moderated by the extent of a firm\u27s international operations as it provides an alternate mechanism for protecting their assets. Together, the results provide evidence of the globally interdependent nature of the adoption and development of property rights regimes and the importance of these regimes in explaining MNC investment choices

International investment regimes: De jure policies, de facto practices and MNC strategic choices

This dissertation addresses the adoption and development of effective property rights regimes in the global system of countries and the influence of these regimes on multinational corporations\u27 (MNCs) investment choices. I argue that formal property rights regimes and de facto practices adopted by a country are influenced by those of other countries within the global system even in the presence of decoupling (i.e. the divergence of de facto practices from de jure policies). Further, location choices of MNCs are influenced by the development of effective property rights regimes in host countries while firm level characteristics alter their sensitivity to these regimes. I present evidence from three related empirical studies. Chapter 2 establishes the interdependent nature of policy adoption in a dyadic context by observing the signing of Bilateral Investment Treaties (BITs). Domestic factors as well as international diffusion pressures of competition and emulation explain patterns of BIT signing while their relative impacts shift between early periods of policy innovation and later periods of policy institutionalization. Chapter 3 confirms the persistence of global diffusion pressures after adoption through an examination of Intellectual Property protection in countries around the world. De facto practices of a country are also influenced by the practices of other countries in the global system. In addition, the international pressures influencing policy adoption have a lasting effect and alter subsequent behavior of domestic constituents. Chapter 4 studies the location choices of MNCs in the information services industry to establish the dependence of firms\u27 location choices on the development of a host country\u27s property rights regimes. Observed patterns of MNC location choices may be explained by the current and expected future de facto property rights protection. This relationship is moderated by the extent of a firm\u27s international operations as it provides an alternate mechanism for protecting their assets. Together, the results provide evidence of the globally interdependent nature of the adoption and development of property rights regimes and the importance of these regimes in explaining MNC investment choices

Legalization, diplomacy, and development: Do investment treaties de-politicize investment disputes?

Empirical research on the impact of investment treaties has focused almost exclusively on their effect on foreign investment, with mixed results. Yet, another important promise of the treaties has been ignored altogether. Architects of the investment treaty regime, as well as many current proponents, have suggested that the treaties allow developing countries to de-politicize investor-state disputes; i.e. shield commercial disputes from broader political and diplomatic considerations with developed states. While this argument is widely accepted by legal scholars and practitioners and explicitly promoted by capital-exporting states, it has never been subjected to empirical investigation. We provide the first such test, using an original dataset of US diplomatic actions in 219 individual investment disputes across 73 countries as well as detailed case studies drawing on internal US State Department diplomatic cables. We find no evidence for the de-politicization hypothesis: diplomatic engagement remains important for investor-state dispute settlement, and the US government is just as likely to intervene in developing countries that have ratified investment treaties with the US as those that have not. Coercive American intervention in investment disputes is rare, but this is a general feature of American investment diplomacy after the Cold War, rather than one limited to investors with recourse to legalized dispute settlement procedures. These findings provide a critical corrective to our understanding of the investment treaty regime, and have important implications for understanding the effects of international legalization on developing countries

1. Factors Affecting Public Attitudes towards FDI: Country of Origin, Entry Mode, and Elite Cues

Political science research on foreign direct investment (FDI) often assumes that attracting FDI benefits political leaders because their constituents associate FDI with positive economic outcomes, such as increased development and job growth. And yet, despite strong theoretical reasons for why public opinion should generally favor FDI, specific foreign investment projects sometimes incite stiff public opposition and outright hostility. This study’s goal is to help us better understand what influences public attitudes towards foreign investment and why. For this survey experiment, we focus on two traits of specific FDI projects that could be sources of support or opposition: investment’s country of origin and the investment’s mode of entry. In addition to examining these traits’ effects on support for an investment project, this study investigates the effect of elite cues on these public attitudes towards FDI to observe how responses differ when individuals are provided information about government support or opposition to the FDI project

Frontier in the Research of Nationalism in Organization, Strategy, and International Business

Abstract onl