ABSTRACT
This chapter examines the impact of the ‘new economy’ on decision-making in the multinational enterprises (MNEs). Here, the new economy is taken to mean the technological revolution brought about by the widespread use of the internet and electronic commerce (e-commerce), together with the political developments in the first years of a new millennium. These developments have brought a new volatility to international business and to the operations of MNEs. The responses of firms to these pressures, and to ‘globalisation’, which multinationals help to further, have resulted in important changes of strategy in the world’s MNEs, with widespread consequences for the world economy.
