Analysis Of Bankruptcy Law Provisions In New Member EU Countries: Global Competitive Strategy Implications For Multinational Corporations

Abstract

Globalization has been responsible for a number of ongoing interrelated trends including an accelerated worldwide movement toward economic integration, an ongoing proliferation of new multinational corporations, a widening search for new economic opportunities by multinational corporations, and an increasing concern for and attention to bankruptcy as a contingency strategy for multinational corporations when primary strategies catastrophically fail. The economic benefits associated with the removal of trade barriers is also attracting new member countries to the EU and other trading blocks but these new member countries’ bankruptcy law provisions may have uncertain contingency strategy implications for MNC’s. This paper comprises (1) a brief summary of the general trends associated with globalization; (2) a discussion of why international bankruptcy law is becoming increasingly important in the formulation of contingency strategy in multinational corporations; (3) a discussion and analysis of bankruptcy law provisions in new EU member states; (4) a discussion of the strategic implications associated with new member states’ bankruptcy laws; and (5) general conclusions regarding the attractiveness of new member states’ bankruptcy laws to multinational corporation strategists.