International business in the age of deglobalisation

The chapter explores international business during the interwar period, characterised by rising nationalism, protectionism, and economic uncertainty. Companies faced significant challenges in maintaining global operations, developing innovative strategies to survive. Key adaptation strategies included “cloaking” or disguising national identity; leveraging technological superiority; and forming international cartels to manage production and trade. International cartels emerged as a critical mechanism for businesses to coordinate across borders, with centralised governance structures that allowed some autonomy while regulating competition. These arrangements helped companies navigate hostile economic environments and maintain international presence. Despite the challenging context, foreign direct investments actually rose by approximately 50% between 1914 and 1938. Companies demonstrated remarkable adaptability, using techniques like creating subsidiaries in neutral countries, forming joint ventures, and strategically managing political relationships. The period fundamentally transformed international business, challenging the cosmopolitan, liberal economic order of the pre-World War I era and setting the stage for new forms of global entrepreneurship.