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Export, sssembly-line FDI or FDI with the possibility of technology diffusion : optimal entry mode for multinationals

Banerjee, Tanmoyee; Mitra, Nilanjana - 2008

The paper tries to evaluate the optimal entry mode of a Multinational Company that is choosing among export, fragmented production structure with assembly-line FDI in LDC or complete production in LDC with FDI. The results show that if the plant installation cost is sufficiently high then the...