Regional Dimensions of Liability of Foreignness: Between a Rock and a Hard Place?

In this paper we develop optimized localization strategies for multinational firms to overcome their liability of foreignness by adding a regional dimension. We explore conceptually whether economic stress in a region has a mitigating or reinforcing effect. We test this analytical framework empirically on the highly internationalized German car market and find that economically depressed regions are promising stepping stones into foreign markets.

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Year of publication:	2007-03
Authors:	Sofka, Wolfgang ; Zimmermann, Jörg
Institutions:	Max-Planck-Institut für Ökonomik, Max-Planck-Gesellschaft
Subject:	Liability of foreignness \| multinational strategy \| automotive market

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Extent:	application/pdf
Series:	Papers on Entrepreneurship, Growth and Public Policy.
Type of publication:	Book / Working Paper
Notes:	28 pages
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005824122