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The bridge model: how Spanish multinationals are building economic ties between Asia and Latin America

Published online by Cambridge University Press:  20 January 2017

Lourdes Casanova  and
Eduardo Rodríguez-Montemayor
Eduardo Rodríguez-Montemayor
Affiliation:
INSEAD – Senior Researcher eLab, Blvd de Constance 77300 Fontainebleau, France
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Abstract

While the West is struggling to find a way out of recession, emerging markets present myriad opportunities for growth. This paper offers a new perspective on how global economic triangulation facilitates trade between regions. Triangulation occurs where barriers exist to trade and investment between two countries and a third party (e.g., a country) acts as a facilitator or bridge. The “bridge model,” as we call it, shifts the focus away from national policy as a facilitator of international trade and emphasizes the role of companies. Corporate bridge-building is essentially a form of economic triangulation, and we use the terms “bridge” and “triangulation” interchangeably. Various examples are cited to show how Spanish multinational companies have served as a bridge connecting Asia and Latin America, and in so doing have expanded their own business. Thanks to their links with both regions they create business relationships that might otherwise be impeded by cultural or language barriers, facilitating the flow of products, knowledge and financial resources. In this way firms in otherwise stagnating economies have an opportunity to grow by facilitating trade and investment between emerging markets via the bridge model.

Type
Research articles
Information
Business and Politics , Volume 16 , Issue 3 , October 2014 , pp. 373 - 391
Copyright
Copyright © V.K. Aggarwal 2014 and published under exclusive license to Cambridge University Press 

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