Abstract
“Who is us?” is a fundamental issue in international business theory and policy. Policies to maximise the benefits of a country’s locational domain (best for the individuals within the territory of the home country, “citizens”), differ markedly from the best policies for the owned assets of the country wherever they are located globally. Investigating the question leads to issues of appropriate policy targets over time and space and points to the important influence of changes in the structure and pattern of globalisation for the design of national and international business policies.
Summary
In 1990, Robert Reich wrote an article titled "Who is Us?" in the Harvard Business Review. He explored how globalization affects economic nationalism, questioning whether U.S. companies truly serve American interests. Reich argued that multinational companies often prioritize global efficiency and shareholder value over national loyalty. He suggested that economic policies based on outdated ideas of corporate nationality might not benefit the public. Reich emphasized that the focus should be on the welfare of American workers and communities, rather than on the nationality of corporations.
This article revisits Reich's ideas in the context of today's global economy. It examines how multinational enterprises (MNEs) operate in a world where global value chains (GVCs) are common. GVCs involve different companies from various countries working together to produce goods. The article discusses how MNEs make decisions about where to locate their operations and how to manage their supply chains. It highlights the importance of considering factors like control and location, rather than just ownership, when evaluating a company's impact on the domestic economy. The article also explores how geopolitical tensions and technological advancements influence these decisions.
The findings suggest that corporate nationality is less relevant in today's interconnected world. Instead, policies should focus on encouraging investments that boost domestic productivity, regardless of whether they come from foreign or domestic firms. The article concludes that defining "us" should include not only current citizens but also future generations and migrants. It emphasizes the need for policies that balance immediate needs with long-term sustainability.
The article suggests that modern industrial strategies should involve proactive government roles in shaping markets and fostering competitiveness. This approach aligns with Reich's focus on supporting workers and targeting high-value sectors. Ultimately, the question "Who is Us?" remains crucial as it challenges policymakers to rethink economic strategies in a globalized world.
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