Download pdf
The Impact of Global Economic Policy on Corporate Internationalization Pathways: A Comprehensive Analysis of Trade Agreements, Exchange Rate Fluctuations, and Import-Export Restrictions
- 1 The Chinese University of Hong Kong, Hong Kong, China
- 2 Golden Gate University, San Francisco, USA
- 3 Royal Melbourne Institute of Technology University, Melbourne, Australia
* Author to whom correspondence should be addressed.
Abstract
This article outlines the effects of global economic policy on corporate internationalization, with an emphasis on trade agreements, exchange rates and import-export controls. In using a representative sample of MNCs in multiple industries, this paper employs a quantitative framework to investigate how such policy considerations influence firms’ market entry decisions and use of resources. Findings show that trade agreements tend to make it extremely tempting for firms to use high-capital entry channels like FDI, by minimising tariffs and standardizing rules. Conversely, exchange rate volatility pushes firms towards low-capital activities such as exports in order to offset currency risks. Additionally, strict import-export regulations force firms to respond by manufacturing in-house or domestically sourcing inputs, thereby altering competitive positioning. These studies offer useful insight into the complicated connection between global economic policy and international business practices and the need for flexible financial models to deal with changing policy environments.
Keywords
internationalization, trade agreements, exchange rate volatility, import-export restrictions, corporate strategy
[1]. Igbinenikaro, E., & Adewusi, A. O. (2024). Navigating the legal complexities of artificial intelligence in global trade agreements. International Journal of Applied Research in Social Sciences, 6(4), 488-505.
[2]. González, J. L., Sorescu, S., & Kaynak, P. (2023). Of bytes and trade: Quantifying the impact of digitalisation on trade.
[3]. Chaisse, J., & Hsieh, P. L. (2023). Rethinking Asia-Pacific regionalism and new economic agreements. Asia Pacific Law Review, 31(2), 451-468.
[4]. Abman, R., Lundberg, C., & Ruta, M. (2024). The effectiveness of environmental provisions in regional trade agreements. Journal of the European Economic Association. Advance online publication. https://doi.org/10.1093/jeea/jvae023
[5]. Jung, B. (2023). The trade effects of the EU-South Korea free trade agreement: Heterogeneity across time, country pairs, and directions of trade within country pairs. Open Economies Review, 34(3), 617-656.
[6]. Castle, M. A. (2023). How do global trade rules evolve? Strategic sequencing in international economic law. Review of International Political Economy, 30(4), 1387-1412.
[7]. Kowalski, P., & Legendre, C. (2023). Raw materials critical for the green transition: Production, international trade and export restrictions.
[8]. Suh, J., & Roh, J. (2023). The effects of digital trade policies on digital trade. The World Economy, 46(8), 2383-2407.
[9]. Abid, M., & Saqlain, M. (2023). Utilizing edge cloud computing and deep learning for enhanced risk assessment in China’s international trade and investment. International Journal of Knowledge Innovation Studies, 1(1), 1-9.
[10]. Mandrinos, S., & Lim, W. M. (2023). De‐internationalization: An organizational institutionalism perspective. Global Business and Organizational Excellence, 42(3), 58-73.
[11]. Dai, J., et al. (2024). Green policymaking in top emitters: Assessing the consequences of external conflicts, trade globalization, and mineral resources on sustainable development. International Journal of Sustainable Development & World Ecology. Advance online publication. https://doi.org/10.1080/13504509.2024.1
[12]. Dhingra, S., Freeman, R., & Huang, H. (2023). The impact of non‐tariff barriers on trade and welfare. Economica, 90(357), 140-177.
[13]. Wang, Q., Zhang, F., & Li, R. (2024). Free trade and carbon emissions revisited: The asymmetric impacts of trade diversification and trade openness. Sustainable Development, 32(1), 876-901.
Cite this article
Liu,J.;Yang,Y.;Zhang,X. (2024). The Impact of Global Economic Policy on Corporate Internationalization Pathways: A Comprehensive Analysis of Trade Agreements, Exchange Rate Fluctuations, and Import-Export Restrictions. Journal of Fintech and Business Analysis,2(1),6-10.
Data availability
The datasets used and/or analyzed during the current study will be available from the authors upon reasonable request.
Disclaimer/Publisher's Note
The statements, opinions and data contained in all publications are solely those of the individual author(s) and contributor(s) and not of EWA Publishing and/or the editor(s). EWA Publishing and/or the editor(s) disclaim responsibility for any injury to people or property resulting from any ideas, methods, instructions or products referred to in the content.
About volume
Journal：Journal of Fintech and Business Analysis
© 2024 by the author(s). Licensee EWA Publishing, Oxford, UK. This article is an open access article distributed under the terms and
conditions of the Creative Commons Attribution (CC BY) license. Authors who
publish this series agree to the following terms:
1. Authors retain copyright and grant the series right of first publication with the work simultaneously licensed under a Creative Commons
Attribution License that allows others to share the work with an acknowledgment of the work's authorship and initial publication in this
series.
2. Authors are able to enter into separate, additional contractual arrangements for the non-exclusive distribution of the series's published
version of the work (e.g., post it to an institutional repository or publish it in a book), with an acknowledgment of its initial
publication in this series.
3. Authors are permitted and encouraged to post their work online (e.g., in institutional repositories or on their website) prior to and
during the submission process, as it can lead to productive exchanges, as well as earlier and greater citation of published work (See
Open access policy for details).