Balancing Power without Weapons: State Intervention into Cross-Border Mergers and AcquisitionsWhy do states block some foreign direct investment on national security grounds even when it originates from within their own security community? Government intervention into foreign takeovers of domestic companies is on the rise, and many observers find it surprising that states engage in such behaviour not only against their strategic and military competitors, but also against their closest allies. Ashley Lenihan argues that such puzzling behaviour can be explained by recognizing that states use intervention into cross-border mergers and acquisitions as a tool of statecraft to internally balance the economic and military power of other states through non-military means. This book tests this theory using quantitative and qualitative analysis of transactions in the United States, Russia, China, and fifteen European Union states. It deepens our understanding of why states intervene in foreign takeovers, the relationship between interdependence and conflict, the limits of globalization, and how states are balancing power in new ways. This title is also available as Open Access. |
Contents
Introduction | 1 |
A Theory of NonMilitary Internal Balancing | 31 |
2 | 70 |
Deal | 93 |
Unbounded or Overbalancing? An Outlier Case | 158 |
Mitigating Threats to National | 196 |
NonIntervention and the Internal Intervention 6 | 253 |
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Balancing Power without Weapons: State Intervention into Cross-Border ... Ashley Thomas Lenihan No preview available - 2020 |
Common terms and phrases
acquisition Alcatel Alcatel-Lucent ally assets block bounded CFIUS CFIUS process Chapter Check Point China China Netcom Chinese government CNOOC CNOOC Ltd CNOOC/Unocal company’s competition concerns Congress context countries cross-border M&A Danone database defense Descriptive statistics discussed domestic Dubai Ports World economic nationalism economic power eign energy examined example Financial foreign investment foreign takeovers France France’s geopolitical competition globalization government intervention government’s Graham & Marchick hypothesis industry interest groups internal intervention intervention into foreign investors involved issue lawmakers Lenovo Lucent ment merger military power mitigation MNLM MOFCOM motivating national champion national security national security concerns national security grounds nomic non-military internal balancing PCCW political potential relationship relative resource dependency review process role Russia secu security community security review shareholders soft balancing Sourcefire state’s target company threat tion Trade transaction unbounded intervention UNCTAD Unocal variable veto Zephyr