Whereas roots of globalization are far reaching, it is primarily a modern age phenomenon. Modern business operation and the world economy are characterized by domination of multinational corporations, strong presence of the government in economy and the long-term tendency towards globalization...

Comparing domestic- and foreign-owned firms in Germany, this paper finds that foreign-owned firms are more likely to focus on short-term profit. This influence is particularly strong if the local managers of the German subsidiary are not sent from the foreign parent company. Moreover, the...

Do knowledge externalities from FDI foster local innovative performance? Employing manufacturing data for the period 2001–2006 this paper investigates the impact of inward FDI on the generation of innovation. Adopting a Knowledge Production Function approach (KPF), we find that in the case of...