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The interdependence of regional trade and production networks has important implications for national prosperity, regional stability and the internationalization of production. We ask: What are the locational patterns of trade in value-added in East Asia and how are these patterns changing over time? The disintermediation of value chains and the externalization of business activity create hubs of capability and extend value chains between countries. We adopt input-output techniques to analyze the evolution of production networks in East Asia over the period 1990-2005 from a value chain perspective. A high density of cross-border interaction is reported alongside changing geographic dynamics, and an informal integration derived from intermediates trade in value-addition. The locational interdependence of developed and less-developed countries across the region leverages on the heterogeneity of locationspecific advantages within the region.

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While strategic renewal has increasingly received interest from strategy scholars (Baden

Based on a literature review of terrorism and global business literature, this paper addresses those conditions that may lead to new considerations about risk and its management at policy and the MNE (multinational enterprise) level. How do MNEs adapt to the 09/11 ‐ type risk in strategic management that shapes choices made for internationalization and for international business operations? It is observed that MNEs increasingly enlarge the notion of political risk. We suggest the development of a strategic risk assessment that incorporates terrorism which in its threat, event and aftermath does not remain local or national, but influences investment, location, logistics, supply‐chain and other performance‐ linked decisions of the international value chain through an enlarged risk‐return evaluation. Using the OLI‐paradigm as a typology, we extend Dunning’s work by incorporating the terrorism dimension. We do so mainly through the analysis and distinction of the most vulnerable links in firms’ value chain in which adjustments need to be made in the face of terrorism threat, act and aftermath. This paper attempts to improve the understanding of international management in an era of global risk and uncertainty.