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Interactive impact of ethnic distance and cultural familiarity on the perceived effects of free trade agreements

journal contribution
posted on 15.04.2019, 00:00 by R Kingshott, P Sharma, Peter Hosie, N Davcik
Past research on free trade agreements (FTAs) mostly uses an economic perspective to assess their impact on the level of trade and investments between nations. As a result, there is a distinct paucity of research on the perceptions of employees and managers in organizations affected by FTAs, towards the likely outcomes of those FTAs. We address this gap by using the context of recently signed China-Australia free trade agreement (ChAFTA) to develop a multidimensional scale for the perceived advantages and disadvantages of FTAs. Drawing on social identity theory and the similarly-attraction paradigm we also show direct and interactive effects of perceived ethnic distance (between home and partner country) and cultural familiarity (with the FTA partner country) on these perceived outcomes of FTAs. Our findings highlight the need to look beyond the economic perspective and consider a much broader range of perceived outcomes of FTAs. © 2018 Springer Science+Business Media, LLC, part of Springer Nature

History

Volume

36

Issue

1

Start Page

135

End Page

160

Number of Pages

26

eISSN

1572-9958

ISSN

0217-4561

Publisher

Springer, US

Peer Reviewed

Yes

Open Access

No

External Author Affiliations

Curtin University; Instituto Universitario de Lisboa (ISCTE – IUL), Lisbon, Portugal

Era Eligible

Yes

Journal

Asia Pacific Journal of Management