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A quarter of a century has passed since Stonehill and Nathanson (1968) surveyed multinational companies to determine their foreign capital budgeting practices. Since then, research has not only refined its theoretical base on this subject but also expanded the knowledge of actual practices by multinational companies. This article summarizes the findings of major multinational capital budgeting studies for the last 25 years to ascertain whether companies followed theoretically prescribed approaches. Then, it suggests further research to advance the knowledge on this subject.

The Overseas Chinese, the Chinese Commonwealth, or the Chinese Web, consists of companies formed by Chinese who are found outside of China and inside other countries, such as, the United States, Thailand, Singapore, and Malaysia. These Chinese entrepreneurs work under a set of familial, cultural, and relationship values. They help one another and protect each others businesses. Non‐Chinese companies are now realising the potential growth of this unofficial Chinese economy. This network was first formed by family relationships. However, foreign companies outside this web may find it easier to enter by linking themselves into joint ventures, marriages, political opportunities or just by having some common culture. This Chinese economy is starting to grow approximately by 5% each year. These Chinese entrepreneurs are not cluttered in a single region, as it is in the case of North America, Europe, and Japan. But yet, these potential marketers are failing to realise the importance and the power of this growing economy.

Considers the environmental differences that may need to be considered when marketers enter into a new country such as media restrictions. Cultural and legal factors. Observes a study of Malaysian media professionals’ perceptions towards various media and advertising restrictions in their country. Presents findings suggesting that advertising images, particularly nudity, indecent language, and sexist images were perceived as major reasons for advertising restrictions.

The dyadic relationship between U.S. parent advertising agencies and their foreign affiliates were examined, using information gathered from 344 respondents in 52 countries. Parent agencies tended to position themselves to control their overseas affiliates by either totally or majority owning their operations but did not significantly influence, and thus control, their marketing activities. Several environmental factors, particularly claims advertisers can make and hiring restrictions, likely played important roles that affected the extent parent agencies influenced their affiliates.

The purpose of this study is to examine the capital budgeting strategies that are used by foreign subsidiaries of U.S.‐based multinational enterprises. While the results indicated a preference for sophisticated capital budgeting techniques as the primary method of analysis, the actual use of sophisticated capital budgeting techniques by foreign managers may not be as widespread as expected by financial theorists. Although it was found that certain environmental and company‐specific factors influenced the level of sophistication of capital budgeting practices used by U.S. foreign subsidiaries, the associations were small and had only minor explanatory significance. The results showed that foreign subsidiaries exposed to high levels of political and financial risk tended to use sophisticated capital budgeting strategies. Subsidiaries characterized by high levels of financial leverage and high cost of capital requirements also employed advanced capital budgeting strategies. Multinational enterprises (MNEs) have many options available to them in terms of how they manage their foreign subsidiaries. Traditionally, most major policy decisions were made at the parent firm's headquarter office while foreign subsidiaries had few opportunities to influence major corporate decisions. Today, more companies are using a flexible approach which involves setting strategic goals at the home office and allowing local managers to implement their own specific policies. An important question in this study involved determining how effective local foreign managers were in implementing their capital budgeting processes. As U.S.‐based MNEs continue to expand their operations abroad, there is an increased need to examine which financial decision models are actually used by subsidiary managers to deal with the increased complexity of investing in foreign countries. Unlike traditional capital budgeting analysis, international analysis is a considerably more complex process. These complexities occur for a number of reasons including complicated cash flows estimates, changes in foreign exchange rates, different accounting systems, potential for blocked funds, and political risk considerations. These factors are rarely experienced by traditionally domestic U.S. firms. To maintain a competitive edge, MNEs must continue to use the most efficient approaches available to them. This study provides a detailed analysis of the capital budgeting practices that are actually being used by foreign subsidiaries of U.S.‐based MNEs. The paper is organized in the following manner. Section I provides a brief overview of the theoretical and practical issues of international capital budgeting analysis. Section II focuses on the areas of data collection, questionnaire design, and environment‐specific and company‐specific factors. Section III discusses usage of capital budgeting techniques, adjustment and assessment of project risk, and factors influencing capital budgeting policies. The final section presents some findings from this study.

One important issue international firms must face involves the evaluation and control of credit risk. Many studies dealing with international credit management have focused on the practices used by multinational enterprises. In this study we take a different approach to this topic by analyzing the credit management decisions made by 188 U.S. foreign subsidiaries. We examine many aspects of the foreign subsidiary manager's credit policies including credit standards, credit terms, collection efforts and customer creditworthiness. The results of this study indicate that credit management practices of foreign subsidiaries are similar to those used by parent companies. In addition, the findings show that foreign managers generally use theoretically‐preferred methods when making credit decisions.

As the Japanese economy has become increasingly international, the issue of keiretsu relations has become a focus of attention. Keiretsu is an indigenous feature of Japan's production and distribution systems that some say leads to unfair competitive practices, triggering intense discussions from the United States government. American businesses realize that a major reason for their failures in the Japanese market lies in the nature of Japanese business practices, as exemplified by exclusive keiretsu relations. However, like it or not, keiretsu related firms dominate Japanese economic life. If U.S. firms are to penetrate the market in the “land of the rising sun,” they must learn to successfully market to keiretsu‐member Japanese firms. This paper shows how the present keiretsu system can be traced back to the culture of ancient Japan and is itself a revival of the modern zaibatsu system of business organizations which, for all practical purposes, it replaced after World War II and, paradoxically, while the occupation and restructuring of the country incumbed to its victorious foe, the United States.

This empirical study examined U.S. advertising agencies' practices in the Asia Pacific Region to decide whether they were following Theodore Levitt's advice to promote products and services the same way everywhere. Information regarding environmental factors and advertising strategy were gathered from 200 Asia Pacific Region affiliates of U.S. advertising agencies in 11 countries. It was found that in general, agencies were neither standardising nor customising their sales platforms and creative contexts. Instead they tended to utilise the adaptative approach‐‐a strategy that is becoming viewed as the optimal approach by multinational ad agencies.

As more businesses invest in China, there will, of course, be increased marketing opportunities there. But while China′s current government continues to encourage foreign investment, the future holds some political uncertainties. This vast country has the opportunity to become a supereconomic power, but its government must lead the way, and not scare off potential investors.

The Japanese “sogo shosha” – Japanese General Trading Companies – have played a major role in the phenomenal growth of the Japanese economy. Throughout the century, sogo shosha have secured raw material import inputs and have marketed and manufactured high value‐added exports of the Japanese economic machine. However, the twenty‐first century is nearly here – along with its global interdependent economy. How will the sogo shosha respond and adapt to these new economic realities? Does the sogo shosha have a future? The answer is “Yes”, but some changes are necessary if the sogo shosha are to survive in the next century.