{"id":3809,"date":"2021-05-04T07:32:00","date_gmt":"2021-05-04T06:32:00","guid":{"rendered":"https:\/\/escp.eu\/thechoice\/?p=3809"},"modified":"2021-10-05T16:17:48","modified_gmt":"2021-10-05T14:17:48","slug":"corporate-globalisation-is-an-imaginary-enemy","status":"publish","type":"post","link":"https:\/\/escp.eu\/thechoice\/tl-dr\/corporate-globalisation-is-an-imaginary-enemy\/","title":{"rendered":"Corporate globalisation is an imaginary enemy!"},"content":{"rendered":"\n<p><a href=\"https:\/\/www.bloomberg.com\/news\/articles\/2021-04-12\/veolia-agrees-to-buy-suez-ending-bitter-takeover-battle\" target=\"_blank\" rel=\"noreferrer noopener\">As reported across the globe<\/a>, after a long takeover battle Suez and Veolia have recently come to an understanding and <mark>the merger of the world\u2019s two largest water and waste groups should reshape the sector<\/mark>.<\/p>\n\n\n\n<p>If Veolia wins the next battle(s), that is: \u201cEven if significant concessions are sufficient to satisfy domestic and European regulators, <strong>competition authorities may weigh in on the proposed tie-up to avoid a fused Veolia-Suez gaining a dominant position in their markets<\/strong>,\u201d <a href=\"http:\/\/eu-policies.com\/competences\/economy\/france-faces-fallout-veolias-bid-take-suez-home-abroad\/\" target=\"_blank\" rel=\"noreferrer noopener\">comments think-tank EU Policies<\/a>, which argues that Veolia\u2019s CEO, Antoine Fr\u00e9rot, is hoping to take advantage of the pandemic-induced financial recession sweeping across Europe, as well as tap into <mark>a groundswell of support for the idea of building European industrial giants that could compete on an even keel with American and Chinese behemoths<\/mark>. \u201cThere is still, however, little appetite for the creation of large European monopolies, whether at home\u2014particularly under European Competition Commissioner Margrethe Vestager\u2019s critical eye\u2014or abroad.\u201d<\/p>\n\n\n\n<h4 class=\"wp-block-heading\"><strong>Discrediting the myth of the European champion?<\/strong><\/h4>\n\n\n\n<p><a href=\"https:\/\/escp.eu\/news\/corporate-globalization-imaginary-enemy\" target=\"_blank\" rel=\"noreferrer noopener\">I commented on<\/a> the Alstom-Siemens veto by the European competition authority in the past, asserting that the issue of corporate globalisation is widely used and poorly known. There was a de-globalisation narrative even before the Covid-19 pandemic, as observed in <a href=\"https:\/\/www.economist.com\/briefing\/2017\/01\/28\/the-retreat-of-the-global-company\" target=\"_blank\" rel=\"noreferrer noopener\">this article published by The Economist<\/a>, and in its aftermath <a href=\"https:\/\/thriveglobal.com\/stories\/why-covid-19-will-change-european-business-forever\/\" target=\"_blank\" rel=\"noreferrer noopener\">I explained<\/a> that in the short run <mark>the largest European companies could be seriously damaged by a strong de-globalisation wave<\/mark>. In the longer run, for future competitiveness Europe would need to help champions in new industries emerge with a solid regional basis. More than consolidating what is already consolidated\u2026<\/p>\n\n\n\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\"><p>\u201cLike Don Quixote de la Mancha, critics who claim that globalised companies are a malign presence in host countries and feed on malignant decision-making processes are, in fact, up against largely imaginary enemies\u201d<\/p><\/blockquote>\n\n\n\n<p><a href=\"https:\/\/link.springer.com\/article\/10.1057\/s41267-018-0192-2\" target=\"_blank\" rel=\"noreferrer noopener\">A closer look at the reality of corporate globalisation<\/a> provides a more ambiguous perspective anyway, showing that <strong>there is a big gap between the discourses on corporate globalisation and the reality of company activities in business<\/strong>, the permanence of which generates many myths. Like Miguel de Cervantes&#8217; character in The Ingenious Gentleman Don Quixote de la Mancha, critics who claim that globalised companies are a malign presence in host countries and feed on malevolent decision-making processes are, in fact, up against largely imaginary enemies. They are attacking windmills, which they believe to be ferocious giants.<\/p>\n\n\n\n<p><mark>Myths often strive with the fact they tell convincing stories for unsolved problems<\/mark>. You can be sure that <strong>further empirical studies on corporate globalisation would mostly demonstrate the vulnerability, rather than the ferociousness, of the few global firms<\/strong>, the few born globals and the few truly global value chains, presently in existence.<\/p>\n\n\n\n<p><\/p>\n\n\n\n<hr class=\"wp-block-separator is-style-wide\"\/>\n\n\n\n<p><\/p>\n\n\n\n<p><em>This post gives the views of its author, not the position of ESCP Business School.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Prof. R\u00e9gis Coeurderoy comments on the global coverage of the merger between Suez and Veolia, going against the flow of false beliefs spread about the few, vulnerable global firms by the Don Quixotes of this world. <\/p>\n","protected":false},"author":6,"featured_media":3810,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[15],"tags":[],"class_list":["post-3809","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-tl-dr","category-15","description-off"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.5 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Corporate globalisation is an imaginary enemy! - The Choice by ESCP<\/title>\n<meta name=\"description\" content=\"Prof. R\u00e9gis Coeurderoy comments on the global coverage of the merger between Suez and Veolia, going against the flow of false beliefs spread about the few, vulnerable global firms by the Don Quixotes of this world.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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