Frederick Guy

There is much to like in this book about historical change and diversity in the global business environment. Most of all, that Frederick Guy combines with ease a wide range of approaches to the subject which as a general rule don’t speak (much) to one another, including: international business theory; the theory of the growth of the large corporation but also its periodic transformation; global political economy and international relations theory on the interaction between states and multinational firms; innovation studies and the theory of paradigm shifts; the sociology of post-Fordism and varieties of capitalism; and the history of change and evolution in the global business environment. When we read Guy’s book we cannot help but understand that this subject must be treated as interdisciplinary, and why so much of the literature cast within one or other of the usual disciplinary silos offers us only a highly partial picture of an interconnected set of processes – or put another way, of the co-evolution of firms, states, and the geographically diverse and locally differentiated institutions of capitalism.

One of Guy’s favourite ways of expressing his goals in this book is depicted by his view that when examining such a complex process of change there are no simple answers – or rather, he corrects himself, there are many simple answers which have some grain of truth in them, and so the issue becomes how to bring them together in a coherent and balanced way. In the course of this exercise, then for my tastes I find that occasionally the contrasts made in this book between different theories or perspectives on the subject are somewhat overstated or exaggerated in the interests of a sharper form of comparison, and perhaps as a means of telling the reader a more interesting story. However, it is quite clear that Guy does generally always attempt to move on to combine, to draw together and to synthesize different approaches in order to provide a broader framework, rather than making contrasts for the sake of debate alone. Indeed, on the whole I believe that Frederick Guy succeeds in his ambitious undertaking. I am happy to recommend his excellent book to other scholars and students in this field, and indeed to anyone with an interest in this fascinating subject.

Grazia Ietto-Gillies, Emeritus Professor of Applied Economics, London South Bank University, writing in the International Review of Applied Economics (forthcoming)

…Is it a textbook or a research monograph? In his acknowledgements at the beginning of the book Guy tells us that the book originated in his course to Master’s students. Having read the acknowledgement after the book my first reaction was: lucky students. The second was to consider whether the book responds more to our expectations about a classical text – albeit at post-graduate level – or to a monograph. I have come to the conclusion that it is more the second though I can see that it makes a very good text for someone with a very wide knowledge. I would strongly advise lecturers in organizational analysis or globalization to consider tackling the issues and making use of this book. The effort required in following Guy’s multi- and inter-disciplinary treatment is very rewarding.

The specific contribution of Guy to the topics is wide ranging. In general the best parts of the book and the main original contributions are to be found in the analysis of production organization and systems and their link to macro economic issues and to politics. I will try to highlight some of the more contributory elements of the book. (1) The discourse moves with ease from the single corporation to the industry to the macro sphere. (2) It moves also with ease from economics to sociology to business history and politics. (3) Underpinning the book as a whole is a historical perspective and analysis. (4) Theoretical issues are illustrated with the aid of many applied cases. Examples include the following industries: clothing and textiles; motor vehicles; microelectronics; film; software and computers; packaging. (5) The role of the state and of institutions in the evolution of production systems and how they help us to understand why successful systems are difficult to replicate in different countries. (6) A wide-ranging comparative analysis that moves from comparisons between production systems, varieties of capitalisms, industries and countries. Novel points and connections are made in the course of comparisons.
[….]

This is a very interesting and very well researched book that can be useful for teaching post-graduate courses and also for people doing research in organizational analysis and production systems. The usefulness derives not only from the range and depth of treatment but also from the myriad of remarks that other researchers can usefully follow up. It is not a book of technicalities, but rather a book of ideas, some of which can be worked out further. This is where young researchers looking for ideas in the field of international production systems can find a useful mine.
The book is written in a clear and pleasing style: little anecdotes and turns of phrase involve the reader in Guy’s analysis and conclusions. The author’s viewpoint in many political issues is not difficult to guess; however, it is not forced down the reader’s throat and this is a strength in the book.

I highly recommend, Frederick Guy’s The Global Environment of Business. It is rare to see a book that with such intellectual depth and breadth that can serve as a course textbook. The research that Guy has synthesized in this book draws on a wide variety of theories and empirical studies emanating from the economics and management disciplines. He portrays a global system that is in continuous evolution, and he clarifies the different intellectual perspectives that seek to explain that evolution. This book will stimulate the thinking of not only students who are being introduced to the relevant debates on global business but also academics and policy-makers who are themselves parties to those debates.

Francesca Sanna-Randaccio
Professor of Economics, Dipartimento di Informatica e Sistemistica, University of Rome “La Sapienza”, Italy

This thoroughly researched, well written volume provides an extensive and careful investigation of how the complex relationship between policy, technology and the international business system has evolved in time. The approach is multidimensional, blending in a successful way international economics and international business with political economy and economic history. The analysis is enriched by well documented industry case studies and numerous examples from the real world. In some of the most interesting passages the author explores how policy and technology shape the environment in which multinational corporations operate, influencing their international strategies, and in turn being affected by them. Special attention is devoted to the role of technological change, underlining the importance of changes in both distance-shrinking technologies and in production systems, such as modularization of production. It is explained how technological change and policy liberalisation have lead to the growth of cross-border production networks. The interaction of corporations and nation-states is analyzed in historical perspective, highlighting the ups and downs in the process of international economic integration. The crucial role of local institutions is also thoroughly discussed, showing how production methods are embedded in institutions and institutional difference may be a source of comparative advantage.

The book also offers valuable insights into future developments. An important claim is that a more localized economy will emerge, regulated at mega-region level. Several reasons to expect an intensification of regional production networks are discussed, including the effect of GHG reduction policies on the structure of the international business system.

I recommend the book first of all to students in international business and international economics, but also to researchers and educated general readers interested in gaining a clear understanding of the complex chain of developments shaping the structure of the present international business system and its evolution. I read the volume with great interest and will recommend it to my students.

Michel Goyer
Associate Professor of Industrial Relations and Organisational Behaviour, Warwick Business School, University of Warwick, UK

Textbooks on international business traditionally focus on a limited number of topics associated with the activities of multinational corporations — modes of entry, political uncertainties, and home/host country effects. Guy’s Global Environment of Business goes further by highlighting the importance of different varieties of capitalism on the process by which MNCs organize their activities. The incorporation of institutional diversity across national business systems provides significant insights on how MNCs build their capabilities.

The book is a remarkable effort to provide an explanation of the current configuration of international business. Namely it tries to answer two key questions: What are the roots of the global corporation? Why did the Nation State accept to enter into a system of integrated markets?
The author chooses an unusual organization of the content, which ends up a success. The book is divided in three parts: the global, the historical and the comparative …
… the author is very precise in presenting the state of the art. Great attention is devoted to illustrate alternative explanations for any phenomenon. Moreover, the book is built upon an astonishing amount of literature, with the author taking into consideration a variety of position ranging from neo-marxism to neoliberal paradigms.
… this book should be part of any modern course on international business and/or globalization.

Slavo Radosevic
Professor of Industry and Innovation Studies; Director, Centre for Comparative Economics; and Deputy Director, School of Slavonic and East European Studies, University College London, UK

I like this book very much both for the topics it addresses and the way in which it connects seemingly different topics. Its historical and comparative perspective is a particular strength. It is accessible and jargon free and can be used on a variety of courses. I like Guy’s capacity to demystify the academic approach by reducing a seemingly complex argument to its essential bare point.

Cecilia Jona-Lasinio
Lecturer, Department of Economics, Luiss University, Rome, Italy

A unique book on international business providing all essential insights to comprehend the driving mechanisms of economic globalization. The clear presentation of the key intuitions of international trade theory makes this manuscript a main reference for all international business economists.

Midwest Book Review

The Global Environment of Business is a fine text offering an analysis of the environment in which international business operates. From how multi-national corporations and nation states interact to shape the international economic system to how the economy internationalizes and how this can lead to a global world or a regional focus, this is packed with technological and historic assessments based on economic research and political science alike: perfect for any college-level business library.

Hiroyasu Uemura
Professor of Economics, International Graduate School of Social Sciences, Yokohama National University, Japan

This is really the best textbook for a graduate student who studies the world economy. I will use it in my course.