Gilmar Masiero

China and the WTO: Will the Market Economy Status Make Any Difference after 2016?

China’s Protocol of Accession to the World Trade Organization, signed on December 2001, allowed other country members to consider China as a Non-Market Economy (NME) until the end of 2016. The aim of this article is to answer the following question: Can the Market Economy Status (MES) Recognition be measured in its compliance? The proxy used for that compliance was the number of antidumping investigations initiated per country. The expectation is that countries recognizing Chinese MES would initiate fewer antidumping investigations than countries still treating China as a NME. This would explain why the Chinese government has been campaigning vigorously since 2001 to gain MES among its economic partners. Using count-models, we demonstrate that MES had a positive impact in reducing the number of antidumping investigations against Chinese products.

China’s quest for energy through FDI: new empirical evidence

China’s current economic development depends heavily on its access to energy resources, and it is increasingly shaping Chinese Outward Foreign Direct Investment (OFDI) in a quest for resources located abroad. The aim of this paper is to answer the two following questions: How much did the Chinese global quest for energy drive its OFDI between 2005 and 2012? And has the quest for energy been sensitive to the geographical location of the resources? We used data on Chinese OFDI from the China Global Investment Tracker, as well as diverse host countries determinants of previously tested OFDI. We measured the impact of host country energy production in the allocation of investments. Using several multivariate regression models, we demonstrate that energy resources were the main driver of Chinese OFDI in 92 host countries during the studied period, and that there was no sensitivity to the geographical location of the resources.

Developments of biofuels in Brazil and East Asia: experiences and challenges

Este artigo resume o papel que as novas tecnologias e as politicas governamentais tem desempenhado na evolucao da industria dos biocombustiveis no Brasil e no Leste Asiatico. Ele documenta os fatores que contribuiram para que o Brasil, China, Japao e Coreia do Sul se tornassem produtores e consumidores de biocombustiveis, bem como a extensao em que essa fonte de energia tem sido efetivamente adotada em cada uma dessas economias. Em seguida, avalia a extensao do comercio e da cooperacao em biocombustiveis entre os tres paises do Leste Asiatico e o Brasil. Argumenta que o Japao e muito mais avancado em sua cooperacao sobre biocombustiveis com o Brasil e que nas demais economias asiaticas existe grande potencial para maior cooperacao.

Going global in groups: a relevant market entry strategy?

Purpose The purpose of this paper is to identify whether the new Chinese phenomenon of going global in groups represents a more advantageous market entry mode than the phenomena considered in previous studies. Design/methodology/approach In this empirical research paper, the authors draw upon the literature in academic journals and books regarding the Chinese special economic zones overseas to analyze and compare collective internationalization (i.e. going global in groups) with traditional market entry modes as per the ownership, location and internalization paradigm (OLI) and transaction cost approach (TCA). Findings The authors identified that financial and diplomatic support provided by the Chinese Government has reinforced internationalization in groups, thereby minimizing some structural risks in host countries. Pre-operational and operating costs have been lowered or shared among group members, and weighted average cost of capital has dropped due to the availability of specific funding lines with subsidized interest rates. Research limitations/implications Given the lack of available literature on the topic, the authors based their study of the collective internationalization of Chinese firms on very few cases, most of which represent market entry in African countries. Practical implications The study calls attention to a new, more efficient and less risky characteristic of international entry modes, which implies that companies can reap multiple benefits by entering markets in global groups. Originality/value As literature addressing market entry modes focuses mostly on individual enterprises, this paper contributes to the identification of advantages in collective internationalization.

Financing the Expansion of Brazilian Multinationals into Europe: The Role of the Brazilian Development Bank (BNDES)

The rise of multinational corporations (MNCs) from emerging markets has been a remarkable phenomenon during the last decade (BCG, 2006; 2013; Wright et al., 2005). While total Foreign Direct Investment (FDI) flows grew by 84 percent from 2001 to 2011, those from developing economies grew by 216 percent (UNCTAD, 2013). This is a considerable leap, from 26 percent to 44 percent of the total flows. A series of recent studies have sought to explain the sudden growth of emerging markets MNCs (Brennan, 2011; Sauvant et al., 2010; Ramamurti and Sigh, 2009). To do so, international business scholars have further developed established analytical instruments in order to account for the rise of these multinationals. In some cases, the OLI (Ownership, Location, Internalization) framework (Dunning, 1986), the Uppsala model Qohanson and Vahlne, 1977; 2009), or the product life-cycle model (Vernon, 1966) have been extended (Ramamurti, 2008). In other instances, scholars have contested dominant internationalization theories, insisting on the need for the development of new frameworks (Mathews, 2002a; 2006b).

Reviewing Research of Internationalization of Brazilian Multinational Enterprises: An Analysis of the Period 2001–2012

The rise of emerging multinationals (EMNs) was a major phenomenon during the last decade (BCG, 2006; Wright, Filatotchev, Hoskisson and Peng, 2005). This rise partly explains the increase in foreign direct investment (FDI) outflows from emerging countries, which totaled US

Research on Brazilian Multinational Enterprises: Descriptive and predictive analyses

457 billion in 2011, reaching the second-highest level ever recorded (UNCTAD, 2012). A series of recent studies have sought to explain the sudden growth of EMNs (Ramamurti and Sigh, 2009; Brennan, 2011), and for some authors, such as political scientists Nolke and Taylor (2010) and Nolke (2011), research in this field became a type of “new industry”.

Marketing performance of subsidiaries operating abroad: An integrative model

Este estudo visa examinar pesquisas recentes sobre a internacionalizacao de empresas multinacionais brasileiras (I-BMNEs) com base na analise de 174 artigos publicados que apareceram em periodicos academicos, livros e conferencias internacionais e brasileiras. A analise descritiva inclui a analise de citacoes e fornece uma tipologia dos principais pesquisadores e faculdades, bem como as abordagens teoricas e metodologicas predominantes. A analise preditiva e baseada em uma nova abordagem de rede neural a fim de classificar as caracteristicas de um manuscrito e prever a adequacao de sua publicacao. Constatamos que as pesquisas sobre I-BMNEs sao realizadas por um pequeno numero de instituicoes e pesquisadores lideres, usando estudos de caso como seu metodo de pesquisa e modelos de Uppsala e de Paradigma Ecletico como estrutura teorica. A analise de citacoes mostra que autores estrangeiros sao citados em periodicos ou em livros traduzidos. A nova tecnica e estrutura da abordagem de rede neural foi criada para adequar os estudos bibliometricos e os resultados da analise preditiva classificaram corretamente 56,25% dos manuscritos. Concluimos fornecendo um conjunto de recomendacoes para avancar as pesquisas sobre I-BMNEs.

The impact of within-country and within-firm factors on Japanese foreign subsidiary performance during economic crisis

In the internationalization process firms face challenges in order to be successful, such as enabling knowledge transfer, finding the optimum balance between standardizing/adapting their marketing strategies, determining the strength of external networks, and deciding degrees of reverse innovation. Research on knowledge transfer in multinational firms has grown considerably over the last 15 years, but still little is known about its impact on the marketing performance of subsidiaries. The majority of the investigations carried out analyze knowledge transfer but not its interrelationships with the performance of subsidiaries. Several other studies evaluate the standardization/adaptation decision, but do not take into consideration issues such as operational environments or psychic distance. To fill this gap we review 70 articles published in top-tier peer-reviewed international and national journals in the field of international business and international marketing. From this review we build up a framework for the development of an integrative and explanatory theoretical model of the marketing performance of subsidiaries operating abroad with fifteen propositions. In this paper we present a literature review and model that will be empirically tested after gathering information to form a reliable database about the performance of multinationals.

The Vagueness of the “Country-Specific Advantage” Construct: Which Host-CSAs Matter for Chinese OFDI?

Purpose The purpose of this paper is to analyze the relevant aspects that influence foreign subsidiary’s performance and remain how they retain competitiveness in international markets during economic crisis. To investigate this effect, this research analyzes the behavior of Japanese subsidiaries located in European countries during the pre- and post-crisis periods that started in the USA in 2008 and spread all over the world. Design/methodology/approach This is a quantitative study with an analysis based on longitudinal data of foreign subsidiaries of Japanese multinational firms during the period 2006-2013. It applies a multiple linear regression with panel data using fixed effects models. Findings The findings show that within-firm factors related to local experiential knowledge, market entry through joint ventures with partners from the same nationality, and subsidiary management with a team of expatriates all have a positive impact on subsidiary performance during times of economic crisis. Moreover, within-country factors involving macroeconomic aspects related to inflation rate and population income indicators show a negative impact on performance. Finally, the results confirm that subsidiary performance is higher in the pre-crisis period, showing the importance of considering economic crisis aspects in longitudinal studies. Practical implications The result has implications for managers of multinational firms to understand which factors most impact the success of their foreign subsidiaries during times of economic crisis. In this way, managers can, with greater confidence, decide to reach the most important performance indicator in subsidiary management. Originality/value The majority of studies on economic crisis is based on an economic perspective and mostly investigates Asian and Argentinean crises. When considering a firm-level perspective, most research studies conducted on a subsidiary level are cross-sectional or use survival as a measure of performance. This paper applies a longitudinal study using subsidiary-level data and analyzes performance by sales and productivity measurement. In addition, it investigates whether or not within-country and within-firm factors impacted subsidiary performance during the 2008 economic crisis.