The Bridge Model: How Spanish Multinationals are Building Economic Ties between Asia and Latin America

20 Pages Posted: 8 Jan 2016

See all articles by Lourdes Casanova

Lourdes Casanova

Cornell University - Johnson Graduate School of Management

Eduardo Rodriguez-Montemayor

INSEAD

Date Written: June 20, 2013

Abstract

While the West is struggling to find a way out of recession, emerging markets present myriad opportunities for growth. This paper offers a new perspective on how global economic triangulation facilitates trade between regions. Triangulation occurs where barriers exist to trade and investment between two countries and a third party (e.g. a country) acts as a facilitator or bridge. The “bridge model”, as we call it, shifts the focus away from national policy as a facilitator of international trade and emphasizes the role of companies. Corporate bridge-building is essentially a form of economic triangulation, and we use the terms “bridge” and “triangulation” interchangeably. Various examples are cited to show how Spanish multinational companies have served as a bridge connecting Asia and Latin America, and in so doing have expanded their own business. Thanks to their links with both regions they create business relationships that might otherwise be impeded by cultural or language barriers, facilitating the flow of products, knowledge and financial resources. In this way firms in otherwise stagnating economies have an opportunity to grow by facilitating trade and investment between emerging markets via the bridge model.

Suggested Citation

Casanova, Lourdes and Rodriguez-Montemayor, Eduardo, The Bridge Model: How Spanish Multinationals are Building Economic Ties between Asia and Latin America (June 20, 2013). INSEAD Working Paper No. 2013/73/ST. Available at SSRN: https://ssrn.com/abstract=2712675 or http://dx.doi.org/10.2139/ssrn.2712675

Lourdes Casanova (Contact Author)

Cornell University - Johnson Graduate School of Management ( email )

370 Sage Hall
Johnson, Cornell University
Ithaca, NY 14853
United States
+16072295251 (Phone)

HOME PAGE: http://www.johnson.cornell.edu/Faculty-And-Research/Profile.aspx?id=lc683

Eduardo Rodriguez-Montemayor

INSEAD ( email )

Boulevard de Constance
77305 Fontainebleau Cedex
France

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