Foreign policy: implications for multinational firms

Daniel S. Andrews (), Stav Fainshmidt (), Michael A. Witt () and Ajai Gaur ()
Additional contact information
Daniel S. Andrews: Georgia State University
Stav Fainshmidt: Florida International University
Michael A. Witt: King’s College London
Ajai Gaur: Rutgers University

Journal of International Business Policy, 2025, vol. 8, issue 1, No 6, 105-119

Abstract: Abstract We argue that foreign policy is a prominent source of risk and opportunities for multinational firms. While domestic policies have received ample attention in international business research, a nation’s foreign policy or its stances and actions vis-à-vis other nations can also upend firms’ strategy and performance, even when domestic policies remain stable. This is particularly salient in the global context of hegemonic decline and attendant geopolitical turbulence and transformation, though foreign policy changes are always relevant. Hence, we propose and delineate foreign policy as a distinct aspect of a nation’s institutional landscape. We illustrate the importance of foreign policy using two cases about India’s foreign policy, tracing how foreign policy shifts substantially affected firms in ways prior research does not address. We offer implications for how incorporating foreign policy helps extend international business scholarship and supports its relevance.

Keywords: Country risk; Foreign policy; Geopolitics; Multinational firms; Political dynamism (search for similar items in EconPapers)
Date: 2025
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://link.springer.com/10.1057/s42214-024-00200-8 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:pal:joibpo:v:8:y:2025:i:1:d:10.1057_s42214-024-00200-8

Ordering information: This journal article can be ordered from
https://www.palgrave.com/gp/journal/42214

DOI: 10.1057/s42214-024-00200-8

Access Statistics for this article

Journal of International Business Policy is currently edited by Sarianna Lundan, Ari Van Assche and Anne Hoekman

More articles in Journal of International Business Policy from Palgrave Macmillan
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().