The Globalization of the Business Sector in a Small Open Economy: The Case of Denmark Its Wider Implications

TY - JOUR

T1 - The Globalization of the Business Sector in a Small Open Economy

T2 - The Case of Denmark Its Wider Implications

AU - Thompson, Grahame

AU - Kaspersen, Lars Bo

PY - 2012/10

Y1 - 2012/10

N2 - The growth of multinational corporations (MNCs) is often taken as a quintessential indicator of 'globalization'. But recent detailed empirical analysis has challenged the idea that most MNCs are global in terms of their business strategy and arena of operations. This article first clarifies the differences between globalization, internationalization and supranational-regionalization by examining the evidence on trade and investment patterns for Denmark. In particular, it presents a detailed analysis of the business strategies of the large corporate sector in Denmark. Denmark is an interesting case, as it is a small open economy (SOE) that might be thought to be one uniquely vulnerable to the forces of globalization. Up until now examination of MNCs' internationalization strategies has concentrated upon large economies. We provide evidence for a SOE. In addition, we expand the range of dimensions used to consider internationalization beyond the location of turnover (sales) to include measures of company assets, employment and physical investment. Furthermore, in the light of the analysis of this company sector, we explore the public policy implications of our results for the future of SOEs in a rapidly changing international business environment.

AB - The growth of multinational corporations (MNCs) is often taken as a quintessential indicator of 'globalization'. But recent detailed empirical analysis has challenged the idea that most MNCs are global in terms of their business strategy and arena of operations. This article first clarifies the differences between globalization, internationalization and supranational-regionalization by examining the evidence on trade and investment patterns for Denmark. In particular, it presents a detailed analysis of the business strategies of the large corporate sector in Denmark. Denmark is an interesting case, as it is a small open economy (SOE) that might be thought to be one uniquely vulnerable to the forces of globalization. Up until now examination of MNCs' internationalization strategies has concentrated upon large economies. We provide evidence for a SOE. In addition, we expand the range of dimensions used to consider internationalization beyond the location of turnover (sales) to include measures of company assets, employment and physical investment. Furthermore, in the light of the analysis of this company sector, we explore the public policy implications of our results for the future of SOEs in a rapidly changing international business environment.

U2 - 10.1093/ser/mwr036

DO - 10.1093/ser/mwr036

M3 - Journal article

SN - 1475-1461

VL - 10

SP - 627

EP - 654

JO - Socio-Economic Review

JF - Socio-Economic Review

IS - 4

ER -