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The corporate disclosure decision is one of the most difficult decisions any corporation, its management and counsel will face. If a corporation learns that it or one of its employees has engaged in a fraud or crime, the corporation, through its officers and directors, must decide whether it should disclose the fraud or crime to the government and, if the decision to disclose is made, what the scope of the disclosure should be. These decisions are fraught with dangers which threaten to expose the corporation and its employees to civil and criminal liability.

The international business literature has long acknowledged that firms face disadvantages when engaging in business abroad. This disadvantage is expressed in such constructs as the costs of doing business abroad, the liability of foreignness and the country-of-origin effect; however, none of these constructs fully captures the potential liability associated with the home base of the multinational enterprise. We develop a new construct, liability of home, aimed at filling this gap, providing insights into the theory and practice of international business.

The purpose of this paper is to review the literature on corporate reputation and internationalization to identify key research theories, contexts, characteristics, methodologies, applications, limitations and opportunities for future research on the interlinks between these two complex constructs.

Elements of systematic literature review and bibliometric analysis were used to analyze theories, contexts, characteristics, methodologies and opportunities for future research based on 90 articles published in 50 journals over 27 years.

The findings suggest that this is a contemporary yet expanding research field explored from a variety of theoretical, methodological and empirical standpoints, which hinders broad conclusions and warrants further research. More specifically, this paper identifies three broad research streams that link international expansion and corporate reputation and suggests avenues for future studies: cross-national institutions, strategic decisions and corporate reputation; international marketing, consumers and brand credibility; and corporate image, international trade and investment flows.

Reputation and internationalization are constructs with multiple applications and interpretations. The way companies build, maintain and extend their reputation and legitimacy, and the drivers, motives and difficulties faced by them when expanding operations internationally have been widely studied separately. This manuscript reviews the nascent and promising linkage between these two elements that have recently drawn the attention of business practitioners and scholars alike.

Jagdish N. Bhagwati is professor of economics and law at Columbia University and one of the most prolific scholars on globalization. He has a BA in economics from Cambridge and a PhD in economics from the Massachusetts Institute of Technology. He has served as an external advisor to the director general of the World Trade Organization, as a special policy advisor on globalization to the United Nations, and as an economics policy advisor to the director general of the General Agreement on Tariffs and Trade. Before moving to Columbia University he was professor at the Massachusetts Institute of Technology. Professor Bhagwati currently serves on the Academic Advisory Board of Human Rights Watch (Asia) and on the board of scholars of the Centre for Civil Society. He is senior fellow of the Council on Foreign Relations.

The foundation collection of the printed books now forming the Library of the British Museum was that of Sir Hans Sloane. This comprised about 40,000 volumes. To it was added in 1759 the Royal collection, begun in the time of Henry VII and inherited by George II from his predecessors on the throne.

The Bureau of Economics in the Federal Trade Commission has a three-part role in the Agency and the strength of its functions changed over time depending on the preferences and ideology of the FTC’s leaders, developments in the field of economics, and the tenor of the times. The over-riding current role is to provide well considered, unbiased economic advice regarding antitrust and consumer protection law enforcement cases to the legal staff and the Commission. The second role, which long ago was primary, is to provide reports on investigations of various industries to the public and public officials. This role was more recently called research or “policy R&D”. A third role is to advocate for competition and markets both domestically and internationally. As a practical matter, the provision of economic advice to the FTC and to the legal staff has required that the economists wear “two hats,” helping the legal staff investigate cases and provide evidence to support law enforcement cases while also providing advice to the legal bureaus and to the Commission on which cases to pursue (thus providing “a second set of eyes” to evaluate cases). There is sometimes a tension in those functions because building a case is not the same as evaluating a case. Economists and the Bureau of Economics have provided such services to the FTC for over 100 years proving that a sub-organization can survive while playing roles that sometimes conflict. Such a life is not, however, always easy or fun.

In the year 1900 Koch expressed the view that human and bovine tuberculosis were distinct diseases, that the bacillus of bovine tuberculosis could not produce this disease in the human subject, and that the bacillus of human tuberculosis could not set it up in the bovine species. As is now well known. these conclusions have not received the slightest confirmation from other workers in the same field, and it may be said that the consensus of scientific opinion is now to the effect that the bacilli of human and bovine tuberculosis are identical—at any rate, so far as the effects attributed to them are concerned. The Royal Commission appointed in 1901, and consisting of the late Sir MICHAEL FOSTER, Drs. SIMS WOODHEAD, SIDNEY MARTIN, MACFADYEAN, and BOYCE, have issued a further interim report on their investigations. The first interim report was published in 1904, the conclusions stated in it being to the effect that the human and animal diseases were identical, and that no characteristics by which the one could be distinguished from the other had been discovered. The report now issued shows that these conclusions are confirmed by the results of a very large number of fresh experiments. The main conclusions set forth in the present report are as understated :—

The Food and Drugs Bill introduced by the Government affords an excellent illustration of the fact that repressive legislative enactments in regard to adulteration must always be of such a nature that, while they give a certain degree and a certain kind of protection to the public, they can never be expected to supply a sufficiently real and effective insurance against adulteration and against the palming off of inferior goods, nor an adequate and satisfactory protection to the producer and vendor of superior articles. In this country, at any rate, legislation on the adulteration question has always been, and probably will always be of a somewhat weak and patchy character, with the defects inevitably resulting from more or less futile attempts to conciliate a variety of conflicting interests. The Bill as it stands, for instance, fails to deal in any way satisfactorily with the subject of preservatives, and, if passed in its present form, will give the force of law to the standards of Somerset House—standards which must of necessity be low and the general acceptance of which must tend to reduce the quality of foods and drugs to the same dead‐level of extreme inferiority. The ludicrous laissez faire report of the Beer Materials Committee—whose authors see no reason to interfere with the unrestricted sale of the products of the “ free mash tun,” or, more properly speaking, of the free adulteration tun—affords a further instance of what is to be expected at present and for many years to come as the result of governmental travail and official meditations. Public feeling is developing in reference to these matters. There is a growing demand for some system of effective insurance, official or non‐official, based on common‐sense and common honesty ; and it is on account of the plain necessity that the quibbles and futilities attaching to repressive legislation shall by some means be brushed aside that we have come to believe in the power and the value of the system of Control, and that we advocate its general acceptance. The attitude and the policy of the INTERNATIONAL COMMISSION ON ADULTERATION, of the BRITISH FOOD JOURNAL, and of the BRITISH ANALYTICAL CONTROL, are in all respects identical with regard to adulteration questions; and in answer to the observations and suggestions which have been put forward since the introduction of the Control System in England, it may be well once more to state that nothing will meet with the approbation or support of the Control which is not pure, genuine, and good in the strictest sense of these terms. Those applicants and critics whom it may concern may with advantage take notice of the fact that under no circumstances will approval be given to such articles as substitute beers, separated milks, coppered vegetables, dyed sugars, foods treated with chemical preservatives, or, in fact, to any food or drug which cannot be regarded as in every respect free from any adulterant, and free from any suspicion of sophistication or inferiority. The supply of such articles as those referred to, which is left more or less unfettered by the cumbrous machinery of the law, as well as the sale of those adulterated goods with which the law can more easily deal, can only be adequately held in check by the application of a strong system of Control to justify approbation, providing, as this does, the only effective form of insurance which up to the present has been devised.

The authors report a field study examining the perceptions of Kenyan host-country stakeholders toward activities of Chinese businesses in their country, and the consequences of this on the legitimacy that they bestow on pertinent entities.

Interviews and observations across an eight-week period of field research revealed generally negative attitudes toward Chinese businesses, with issues pertinent to moral legitimacy prominent, notably, perceptions of corrupt practices, environmental neglect and profit expatriation.

The authors also find evidence that these negative attitudes spilled over to contaminate Kenyans’ perceptions of their own government, which respondents associated closely with the activities of Chinese entities.

The authors extend understanding of legitimacy theory and the implications of foreign business activity by highlighting that businesses may be mistaken to believe that their international business activities are politically neutral, and while host governments may believe that the economic benefits arising from attracting foreign business activity can buttress their legitimacy, the perceived activities of these businesses, in the absence of supporting institutional frameworks, may render this counterproductive.