Globalization and the 'New Enterprise'

Marin, Dalia and Verdier, Thierry (September 2002): Globalization and the 'New Enterprise'. Discussion Papers in Economics 2002-7

Abstract

Globalization has been identified by many experts as a new way firms organize their activities and as the emergence of human capital as the new stakeholder of the firm. This paper surveys recent work which examines the role of trade integration for these changes in corporate organization. More intense competition and the change in the pattern of specialization following trade liberalization make it both more likely that an organizational equilibrium emerges in which power is delegated to lower levels of the firms' hierarchy empowering human capital. Furthermore, trade integration leads to waves of outsourcing and to a convergence in corporate cultures across countries.

• Item Type: Paper (Discussion Paper)
• Keywords: international trade with imperfect competition ; corporate governance ; theory of the firm ; empowerment ; outsourcing
• Subjects: Economics; Economics > Discussion Papers in Economics; Economics > Discussion Papers in Economics > Industrial Organization; Economics > Discussion Papers in Economics > International Trade; Economics > Discussion Papers in Economics > Institutional Economics
• Dewey Classification: 300 Social sciences; 300 Social sciences > 330 Wirtschaft
• Journal of Economic Literature classification: F12, D23, L1, L2
• Language: English