This paper studies the intangible costs of international trade by extending the basic gravity equation with measures of cultural and institutional distance, and institutional quality. Analyzing a sample of bilateral trade flows between 92 countries in 1999, we find that institutional distance...

Purpose – While previous studies have highlighted opportunities, this chapter sheds light on the negative effects of globalization that mature European multinational enterprises (MNEs) encounter. Design/methodology/approach – We develop an extended network perspective to argue that...