Abstract:This paper was approved by the Working Party of the Trade Committee in November 2020 and prepared for publication by the OECD Secretariat. This paper, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.The statistical data for Israel are supplied by and under the responsibility of the relevant Israeli authorities. The use of such da… Show more
“…Digital companies try to establish new partnerships with counterparts abroad to extend the number of users in their network (Cahen and Borini, 2020 [61]). UNCTAD (2017 [62]) reports that internet platforms have ratios of foreign sales to foreign assets of 2.6 as compared to a ratio of one for non-internet companies.…”
Section: Development Of Internal Capabilities That Heavily Rely On Intangible Capitalmentioning
This document, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
“…Digital companies try to establish new partnerships with counterparts abroad to extend the number of users in their network (Cahen and Borini, 2020 [61]). UNCTAD (2017 [62]) reports that internet platforms have ratios of foreign sales to foreign assets of 2.6 as compared to a ratio of one for non-internet companies.…”
Section: Development Of Internal Capabilities That Heavily Rely On Intangible Capitalmentioning
This document, as well as any data and any map included herein, are without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
Over the past decades, we have observed the emergence of multinational corporations (MNCs) that are increasingly characterized by their high levels of unbundling and geographic dispersion of their activities and by their greater reliance on intangible (vs. tangible) assets. We develop a novel typology of MNCs on the basis of these two characteristics and explore how different types of MNCs have been exposed and are likely to respond to the slowdown in the global economic integration since the 2008 global financial crisis. We argue that the degree to which MNCs have unbundled and geographically dispersed their activities and their reliance on intangible (vs. tangible) assets will affect the risks associated with cross-border transfers of goods and services and with holding overseas assets. We advance the international business (IB) literature and contribute to the global strategy literature by using our novel typology to examine MNCs’ exposure and their likely response to deglobalization pressures.
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