Contradictory ideas about China as a country and a state are being
marketed to the public by promoting nationalism and transnationalism regarding
multinational businesses. Thus, using a case study approach with Multinational
Retail Companies in China, this research aims to examine the effect of
nationalism on brand allegiance among Chinese customers. This phenomenon has
been regarded as a metaphor for China’s uncertainty and fear of its cultural
heritage and global capitalism. On the one hand, Chinese commercials peddle
pride by highlighting the country’s rich past, current events, and illustrious
dynasties. Conversely, Chinese commercials use Western icons and ideals to
glamorize their wares. As part of their effort to integrate “Chineseness” with
global capitalism, Chinese marketers also peddle a form of nationalism that
combines elements of both transnationalism and the traditional nationalist
ideology. Nationalism and transnationalism emerge as competing conceptual
frameworks for understanding China in an industrialized world characterized by unequal relationships of power between both
China and the West. This study shows that the business strategies,
ownership structures, years in China, and capital expenditures of U.S. MNCs in
China all vary significantly because of trademark royalties. This, in turn,
affects how businesses evaluate political risk and decide among available
responses to the trade dispute. The research in this paper shows that economic
nationalism has a negative impact on the operation of multinational retail
enterprises in China. This paper analyzes the factors and ways of influence
through case studies. On the one hand, it helps multinational companies to
provide suggestions for better localization strategies in China, and on the
other hand, it can provide a reference for Chinese enterprises to go global.
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