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International
Business and Security
Geostrategy in Perspective
jiye kim
a r pi t r a s wa n t
International Business and Security
“This is an impressive book about international business and security issues for
two reasons: first, it is a comprehensive book, making it relevant for all interna-
tional business scholars, and second, the intersection of international business
and security is very novel and important. As such, this book is a must-read for
scholars and practitioners likewise.”
—Professor Florian Bauer, Sir Roland Smith Chair in Strategic Management,
Lancaster University, United Kingdom
“An excellent and timely read for managers, policymakers, and researchers.”
—Dr Christopher Hoy, The World Bank, United States
International
Business and Security
Geostrategy in Perspective
Jiye Kim Arpit Raswant
Ritsumeikan Asia Pacific University Deakin University
Beppu, Japan Melbourne, Australia
© The Editor(s) (if applicable) and The Author(s), under exclusive licence to Springer Nature
Switzerland AG 2022
This work is subject to copyright. All rights are solely and exclusively licensed by the Publisher, whether
the whole or part of the material is concerned, specifically the rights of translation, reprinting, reuse of
illustrations, recitation, broadcasting, reproduction on microfilms or in any other physical way, and trans-
mission or information storage and retrieval, electronic adaptation, computer software, or by similar or
dissimilar methodology now known or hereafter developed.
The use of general descriptive names, registered names, trademarks, service marks, etc. in this publication
does not imply, even in the absence of a specific statement, that such names are exempt from the relevant
protective laws and regulations and therefore free for general use.
The publisher, the authors, and the editors are safe to assume that the advice and information in this book
are believed to be true and accurate at the date of publication. Neither the publisher nor the authors or
the editors give a warranty, expressed or implied, with respect to the material contained herein or for any
errors or omissions that may have been made. The publisher remains neutral with regard to jurisdictional
claims in published maps and institutional affiliations.
This Palgrave Macmillan imprint is published by the registered company Springer Nature Switzerland AG.
The registered company address is: Gewerbestrasse 11, 6330 Cham, Switzerland
Preface
This book project was made possible with the continuing support of edi-
torial and professional services staff at Palgrave Macmillan and Springer
Nature. It is imperative to acknowledge the importance of all the support
received from loved ones and well-wishers, especially during the pan-
demic period. The authors are eternally grateful to everyone who sup-
ported their writing journey of this book.
vii
Contents
1 International
Business and Security Perspective 1
1.1 Finding the Intersection 3
1.2 Structure of the Book 8
References 11
2 Emerging
Economies and Powers 15
2.1 Mapping the Stories: China and India 16
2.2 Geostrategy in Focus 23
2.3 National-Subnational Interactions 28
References 30
3 International
Business and Security Nexus in China 35
3.1 Geostrategy: The Overview 36
3.2 IB-IS Nexus with Chinese Characteristics 59
3.3 Belt and Road Initiative and Its Performers 75
References105
ix
x Contents
4 International
Business and Security Nexus in India117
4.1 Geostrategy: The Overview 118
4.2 Evolving Foreign Policies 125
4.3 IB-IS Nexus and the Global Security Order: The Quad
Story139
References154
5 International
Business and Security: Present and Future161
References171
I ndex173
About the Authors
xi
Abbreviations
xiii
xiv Abbreviations
Geo-economics is the term that describes the power politics and rivalry
among countries driven by economic rather than military capability
(Luttwak, 1990). Geo-economics in international security has gained
increasing significance. State-centric analysis of geo-economics, particu-
larly, broadens our understanding of how institutionalized and organized
political powers use a tool of economic means to achieve their political
goals. Theories on economic statecraft result in policy implications of
how effectively political leaders employ economic tools. From a geo-
economics perspective, Scholvin and Wigell (2019) argue that power and
security are coupled to commanding and manipulating economic ties,
and the economic connectivity binds countries together. Thus, in addi-
tion to military means, economic statecraft with various means such as
sanctions, investment, and trade shapes the new dimension of power
politics. While the role of the economy has increasingly been more stud-
ied in IS literature, the state-centric analysis and implications focusing on
national foreign policy tend to dominate the field, particularly in tradi-
tional security studies. The phenomenon of interstate war also continues
to be the focus of security studies.
Where do IB and IS scholarships intersect? IB research’s primary topics
are firm internationalization and the interactions between MNEs, host,
and home countries. The IB discussion has implications for the diversifi-
cation of IS research’s referent object and expansion of the scope of secu-
rity. IS scholars are interested in three common questions: whose security
(the referent object), security from what (the scope of security), and how
to secure (the approach to security) (Wallis & Carr, 2016). For example,
if the referent object is a country, that is, national level, the scope of secu-
rity is a threat originating from outside the country. The approach to
security results at the national level as well, for instance, increasing
national defense expenditures, adopting foreign and security policies, and
reinforcing interstate diplomacy. The referent objects of the IS literature
further include non-state actors, such as international organizations,
interstate organizations, subnational interest groups, ethnic groups, and
individuals. The scope of security has been extended through the concept
of securitization to economic security, environmental security, and
human security by Buzan et al. (1998), that is, the Copenhagen School
(McSweeney, 1996). The Copenhagen School of security studies is
defined as “an approach broadly consistent with constructivist thought
1 International Business and Security Perspective 7
chapter focuses on how India’s security and business agendas are inter-
twined with India’s strategic engagement in the Quad and the US-led
Indo-Pacific Strategy and how India harmonized its national projects
with the dynamics in the regional and global balance of power. This chap-
ter studies how India implements India’s Indo-Pacific vision, and it argues
that India’s Indo-Pacific vision is an example of a cross-level nexus of IB
and IS that is in line with India’s Look East policy (later developed into
Act East policy).
Lastly, Chap. 5 concludes that there is an institutional difference
between China and India in the IB-IS interactions. This chapter sum-
marizes evidence found in the empirical analysis of the national policies
and the roles of multilevel actors, including subnational and transna-
tional players, and suggests geostrategic implications. This chapter sug-
gests that players in IB and IS could produce the best performance as
responsible actors when the national foreign and security policies address
dynamics in the IS environment and promote creative IB activities.
References
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M. (2021). State ownership, political ideology, and firm performance around
the world. Journal of World Business, 56(1), 101113.
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international business and management research toward extreme events and
power laws. Journal of International Business Studies, 38(7), 1212–1230.
Baracuhy, B. (2019). Geo-economics as a dimension of grand strategy: Notes on
the concept and its evolution. In M. Wigell, S. r. Scholvin, & M. Aaltola
(Eds.), Geo-economics and power politics in the 21st century: The revival of eco-
nomic statecraft (pp. 14–27). Routledge.
12 J. Kim and A. Raswant
Benz, A., Broschek, J. r., & Lederer, M. (2021). A research agenda for multilevel
governance. Edward Elgar Publishing.
Buckley, P. J., Doh, J. P., & Benischke, M. H. (2017). Towards a renaissance in
international business research? Big questions, grand challenges, and the
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Buzan, B., & Hansen, L. (2009). The evolution of international security studies.
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DiMaggio, P., & Powell, W. (1983). The iron cage revisited: Institutional iso-
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Harvard University Asia Center.
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the implications for international business. Management International
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1 International Business and Security Perspective 13
From the international security point of view, China and India are
involved in potential regional flashpoints as direct contestants that poten-
tially cause ripple effects in the region. Territorial disputes between coun-
tries are a traditional realm of security. China has experienced disputes
with its neighbors on land and sea, and India has done so with its
2 Emerging Economies and Powers 21
Maritime Silk Road (Men, 2019). During the Cold War, China reacted
to threats posed by the Sino-Soviet split and the Soviet-Indian ties by
aligning with Pakistan which required settling the border issue with
Pakistan. Pakistan ceded to China the northern Azad Kashmir territory,
which was also claimed by India, and China became the major arms sup-
plier to Pakistan over the next two decades. The Karakoram Highway,
“the sole paved section of the historic Silk Route from the Mediterranean
to China” (Cohen, 2015, 354), was completed in 1978 after almost
20 years of construction. The Highway connects Kashgar (a city in the
Xinjiang Province of China) and Islamabad (the capital city of Pakistan).
1951), maritime trade and naval power (Mahan, 1949), or the capacity
to control the Asia-Pacific rimland (Spykman, 1944) change the global
balance of power. Traditional geopolitical theories have their own strate-
gic interests and implications for the national strategy of their countries,
for example, Halford Mackinder for British geopolitics, Nicholas
Spykman for containment strategy, and Alfred Thayer Mahan for naval
power. Geopolitics has traditionally been a concept of analyzing the for-
eign and security policymaking of a country actor. For example, to
Mackinder, the rise of transcontinental railroads such as the Trans-
Siberian Railway completed in 1904 was the key to Russian control of
Eurasia and the greatest threat to the global hegemony of Britain (Cohen,
2015). Mackinder’s idea of Eastern Europe as the key to world domina-
tion was reflected in his dictum, “Who rules Eastern Europe commands
the Heartland: Who rules the Heartland commands World-Island: Who
rules World-Island commands the world” (Mackinder, 1919). Spykman,
the American international relations scholar, on the contrary, viewed that
the Eurasian coastal lands were the keys to world control, not Mackinder’s
pivot area in the Eurasian continent, based on his strategic focus on bal-
ancing the rise of Germany (Cohen, 2015).
The term, strategy, is commonly used in various scholarships and con-
texts such as business strategy, investment strategy, and national and mili-
tary strategy. Strategic studies are also one of the subfields that constitute
the domain of security studies. Strategic studies and security studies share
an academic curiosity in terms of understanding threat and risk, and both
are highly engaging in real-world policymaking. However, one of the sig-
nificant differences between the two is that strategic studies focus on the
means and ends of political and military actions, while security studies
question whose security matters and how to secure them. Liddell Hart, a
British military historian and strategist in the twentieth century and one
of the most frequently cited figures in strategic studies for the classic defi-
nition of strategy, defined strategy as “the art of distributing and applying
military means to fulfill the ends of policy” (Hart, 1967, 351). Strategic
studies and security studies are essential subfields of the broader interna-
tional relations (IR) discipline that researches war and peace.
Then, what is geostrategy? Geostrategy incorporates the locational
dimension employed in the IB literature and is a concept used in the
2 Emerging Economies and Powers 25
over territory, control of sea routes, and other physical resources, and it is
why states created borders and devised institutions such as sovereignty to
regulate political authority over the inhabitable land areas in which we
dwell” (Walt, 2021). A state is created based on geographical conditions,
and the role of the state and the government is perpetuated to the extent
that geographical conditions are inseparable from basic human life.
The phenomena of globalization and new technologies have brought
obvious changes in the life of mankind, but they have not entirely made
alterations to the geopolitical nature of global politics and economy
(Grygiel, 2006). Globalization seems to have significantly reduced the
role of geography, but on the other hand, it has also created more com-
plex and diversified variables of policymaking processes based on geopoli-
tics. In other words, globalization did not completely lift traditional
geostrategic considerations from national governments, such as the dis-
tribution of resources and the configuration of physical trade routes on
land, sea, and air. For example, the issue of Sea Lines of Communication
(SLOC) security is a common concern of both international business and
security studies. The significance of SLOC has been strengthened owing
to globalization; however, the direct cause of rising global interests in
SLOC security comes from the fact that a great power like the US needs
to protect and control key trade routes and possesses the power to do so.
Grygiel (2006, 166–167) contends that “it will continue to be necessary
to incorporate geographic factors in the foreign policy of states,” and
“some regions will be more strategic than others and as a result will
demand greater attention.”
In traditional international security studies, it is an important research
question under what conditions countries wage war, conflict, cooperate,
and form alliances. Among other theories in the study of international
security, the balance of threat theory takes a geographic factor as one of
the elements that makes a country considered a threat by others. The bal-
ance of threat theory explains four specific factors: strength, offensive
capabilities, intentions, and proximity (Walt, 1985). Out of these factors,
offensive capabilities and intentions tend to be a relatively subjective fac-
tor that depends on the perspective or the politically driven judgment.
But, strength and proximity factors are more measurable and
predictable.
2 Emerging Economies and Powers 27
have common attributes other than the dominant and leading role of
national governments. They require the contribution of domestic subna-
tional actors and various multilevel actors at home and abroad. China
and India seek to advance their geopolitical influence in neighboring
countries that are in contact with relatively underdeveloped regions of
each country and intend to improve connectivity with these neighboring
countries. Compared to other provinces in China, the income levels are
low in the western inland regions that China needs to pass through to
enter Central Asia and Eastern Europe. Therefore, for China, the devel-
opment of these inland regions and the joint development of neighbor-
ing countries is a critical prerequisite for maximizing the achievements of
the Belt and Road Initiative. Likewise, in order for India’s Act East policy
to successfully connect India with neighboring Asian countries in the
Southeast and Northeast Asian regions, the joint growth of India’s north-
east regions, which are on the way to the neighboring countries, is a
necessary task. Considering the importance of developing such geostrate-
gically important regions within the country for national projects, the
national-subnational interactions are gaining significance. The Belt and
Road Initiative and the Act East policy further suggest the need for
research on the national-subnational interactions.
The traditional approach to international security studies views a
country and national government as a unitary actor like a “billiard ball,”
and the country actor is the primary level of analysis. At the same time,
the conceptualization and empirical examination of the roles of subna-
tional actors, transnational actors, and non-government actors and their
impact provide a useful framework for explaining new trends in interna-
tional security, international relations, and international business.
According to a study of a Chinese subnational government, subnational
actors reinforce or influence their national governments’ foreign policy
agenda. For example, the efforts of the subnational government, Guangxi
Province’s Shanglin County, complicated China’s foreign relations with
Ghana, the particular case they study, and further resulted in influencing
Beijing’s policy by threatening its efforts to gain access to the African
country (Hess & Aidoo, 2016).
30 J. Kim and A. Raswant
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Shifting Asia Pacific Strategy from a Perspective of Critical Geopolitics (Cong
“Yatai” dào “YIntai”: Pipan diyuan zhengzhi xue shijiao xia meiguo yatai
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[“God’s blessing on his heart that made this:” sayd one, “specially
for reuiuing our auncient liberties. And I pray God it may take such
place with the magistrates, that they may ratifie our olde freedome.”
“Amen,” sayd another: “for that shall bee a meane both to stay and
vpholde themselues from falling, and also to preserue many kinde,
true, zealous, and well meaning mindes from slaughter and infamy. If
king Richarde and his counsailours had allowed, or at the least but
winked at some such wits, what great commodities might they haue
taken thereby? First, they should haue knowen what the people
misliked and grudged at, (which no one of their flatterers either
woulde or durst haue tolde them) and so mought haue found meane,
eyther by amendment (which is best) or by some other pollicy to
haue stayed the people’s grudge: the forerunner commonly of ruler’s
destruction.[1750] Vox populi, vox Dei, in this case is not so famous a
prouerbe, as true: the experience of all times doe[1751] approue it.
They should also haue bene warned of their owne sinnes, which call
continually for God’s vengeaunce, which neuer faileth to fall on their
neckes sodainly and horribly, vnles it bee stayed with hearty
repentaunce. These weighty commodities mought they haue taken
by Collingbourn’s vaine rime. But, as all thinges worke to the best in
them that bee good, so best thinges heape vp mischiefe in the
wicked, and all to hasten their vtter destruction. For after this poore
wretche’s lamentable persecution (the common rewarde of best
endeuours) strait followed the fatall[1752] destruction both of this
tyrant, and of his tormentours. Which I wishe might bee so set forth,
that they might bee a warning for euer, to all in authority, to beware
howe they vsurpe or abuse theyr offices.” “I haue here,” quoth[1753] I,
“king Richard’s tragedy.” “Reade it, wee pray you:” quoth[1754] they.
“With a good will,” quoth[1755] I. “For the better vnderstanding
whereof, imagine that you see him tormented with Diues in the
deepe pit of hell, and thence howling this which followeth.”]
[How Richarde Plantagenet Duke of
Glocester murdered his brother’s
children, vsurping the crowne, and in
the third yeare of his raigne was most
worthely depriued of life and
kingdome, in Bosworth plaine, by
Henry Earle of Richmond after called
King Henry the vij. the 22 of August
1485.[1756]
1.
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Betyde mee lyfe or death I desperatly ran,
And ioyned mee in battayle with this earle so stoute,
But fortune so him fauoured that hee the battayle wan,
With force and great power I was beset about:
Which when I did beholde, in midst of the whole route,
With dint of sword I cast mee on him to be reuenged,
Where in the midst of them my wretched life I ended.
41.
42.
Loe, heare you may behold the due and iust rewarde
Of tyranny and treason, which God doth most detest:
For if vnto my duety I had taken regarde,
I might haue liued still in honour with the best,
And had I not attempt the thing that I ought leste:
But desyre to rule, alas, did mee so blinde,
Which caused mee to doe agaynst nature and kynde.
43.
F. Seg.[1778]]
[When I had read this, we had much talke about it. For it was
thought not vehement enough for so violent a man as king Richard
had bene. The matter was well enough liked of some, but the meetre
was misliked almost of all. And when diuers therefore would not
allowe it, “What,” quoth[1779] one, “you know not wherevpon you
sticke: els you would not so much mislike this because of the
vncertaine meeter. The cumlines called by the rhetoricians decorum,
is specially to bee obserued in all thinges. Seing than that king
Richard neuer kept measure in any of his doings, seeing also hee
speaketh in hell, whereas is no order: it were against that[1780]
decorum of his personage, to vse either good meetre or order. And
therefore if his oration were farre worse, in my opinion it were more
fit for him. Mars and the muses did neuer agree. Neither is to be
suffered, that their milde sacred arte should seeme to proceede from
so cruell and prophane a mouth as his: seeing they themselues doe
vtterly abhorre it. And although wee read of Nero, that hee was
excellent both in musicke and in versifying, yet doe not I remember
that euer I sawe any song or verse of his making: Minerua iustly
prouiding, that no monument should remayne of any such vniust
vsurpation. And therefore let this passe euen as it is, which the writer
I know both could and would amend in many places, saue for
keeping the decorum, which he purposely hath obserued herein.” “In
deede,” quoth[1781] I, “as you say: it is not meete that so disorderly
and vnnaturall a man as king Richard was, should obserue any
metricall order in his talke: which notwithstanding in many places of
his oration is very well kepte: it shall passe therefore euen as it is,
though too good for so euill[1782] a person.”[1783] Then they willed
mee to reade the blacke Smith. “With a good will,” quoth I: “but first
you must imagin that you see him standing on a ladder ouer shrined
with the Tyburne, a meete stage for all such rebelles and traytours:
and there stoutly saying as followeth.”]
The wilfvll fall of the blacke Smith,
and the foolishe ende of the Lorde
Awdeley, in Iune, Anno 1496.[1784]
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Such is the courage of the noble hart,
Which doth despise the vile and baser sort,
Hee may not touch that sauers of the cart,
Him listeth not with ech jacke lout to sport,
Hee lets him passe for payring of his porte:
The iolly egles catch not litle flees,
The courtly silkes match seelde with homely frees.
12.
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