Colliding forces

Domestic politics and the global economy

Ethan Kapstein, Stephen J. Kobrin

Research output: Chapter in Book/Report/Conference proceedingChapter

1 Citation (Scopus)

Abstract

While the economy is global, politics and political institutions are still, for the most part, local or national. This set of colliding regulatory and business forces creates tremendous complexity for global businesses that must work across a patchwork of fragmented national and regional regulations. In this chapter, the authors examine some of the complexities of this political and economic terrain through two cases. The first case considers the differences in views of the privacy of personal data between the United States and the European Union that have come to the fore in discussions of the Safe Harbor negotiations. The second case examines the challenges in developing a global information and communications technology (ICT) infrastructure, spearheaded by the US Global Information Infrastructure (GII) initiative. Both of these cases illustrate the challenges of managing global operations in a world of local politics and the importance of deeply held cultural beliefs in shaping the advance of global regulations. They also show that, paradoxically, in a globalizing world, domestic regulations are becoming increasingly important. In March 2003, Porsche, the German sports car manufacturer, abandoned plans for an offering on the New York Stock Exchange because of its opposition to the Sarbanes-Oxley Act. The Act, which was passed in reaction to the “Enron” corporate scandals, requires all firms listed on American markets to comply with new governance standards, including a requirement that chief executive officers attest to the accuracy of financial statements.

Original languageEnglish (US)
Title of host publicationThe INSEAD-Wharton Alliance on Globalizing: Strategies for Building Successful Global Businesses
PublisherCambridge University Press
Pages353-377
Number of pages25
ISBN (Print)9780511522093, 0521835712, 9780521835718
DOIs
StatePublished - Jan 1 2004
Externally publishedYes

Fingerprint

Domestic politics
Global economy
Privacy
European Union
Global business
Sarbanes-Oxley Act
Information infrastructure
Car manufacturers
Personal data
New York Stock Exchange
Financial statements
Local politics
Corporate scandal
Technology infrastructure
Chief executive officer
Governance
Economics
Cultural beliefs
Enron
Political institutions

ASJC Scopus subject areas

  • Business, Management and Accounting(all)

Cite this

Kapstein, E., & Kobrin, S. J. (2004). Colliding forces: Domestic politics and the global economy. In The INSEAD-Wharton Alliance on Globalizing: Strategies for Building Successful Global Businesses (pp. 353-377). Cambridge University Press. https://doi.org/10.1017/CBO9780511522093.016

Colliding forces : Domestic politics and the global economy. / Kapstein, Ethan; Kobrin, Stephen J.

The INSEAD-Wharton Alliance on Globalizing: Strategies for Building Successful Global Businesses. Cambridge University Press, 2004. p. 353-377.

Research output: Chapter in Book/Report/Conference proceedingChapter

Kapstein, E & Kobrin, SJ 2004, Colliding forces: Domestic politics and the global economy. in The INSEAD-Wharton Alliance on Globalizing: Strategies for Building Successful Global Businesses. Cambridge University Press, pp. 353-377. https://doi.org/10.1017/CBO9780511522093.016
Kapstein E, Kobrin SJ. Colliding forces: Domestic politics and the global economy. In The INSEAD-Wharton Alliance on Globalizing: Strategies for Building Successful Global Businesses. Cambridge University Press. 2004. p. 353-377 https://doi.org/10.1017/CBO9780511522093.016
Kapstein, Ethan ; Kobrin, Stephen J. / Colliding forces : Domestic politics and the global economy. The INSEAD-Wharton Alliance on Globalizing: Strategies for Building Successful Global Businesses. Cambridge University Press, 2004. pp. 353-377
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