Abstract In our research paper that analyzes the links between companies and politics in unstable regions, we find that most companies only invest abroad if they can benefit from supranationalagreements, or bilateral investment treaties (BITs), while a handful deliberately choose to operate in countries where their investments are much more at risk. Our researchers were also able to prove, for the first time, that when two countries establish a BIT, an increase in cross-border investments is the direct result. Meanwhile, companies that have a great deal of influence in, or that cultivate strong political ties with, the country in which they invest have no need of a BIT. They thus choose environments where they do not have as much competition. Pierre Dussauge, Joao Albino-Pimentel and J. Myles Shaver, Firm non-market capabilities and the effect of supranational institutional safeguards on the location choice of international investments, Strategic Management Journal, oct. 2018, vol. 39, n° 10, pp 2770-2793. Three questions for Pierre Dussauge, professor of strategy and business policy at HEC How did you choose such a specific topic? One of my Brazilian students, Joao Albino-Pimentel, wrote his thesis on this subject. While serving on the staff of the Brazilian embassy in China, he was involved with economic issues and became interested in corporate political connections. He drew on his own experience. As for me, my work focused on international business, so we combined our competencies. Most studies focus on the risks of corporate investment in certain countries. No research had been […]
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