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We examine the role of cost uncertainty in a firm's choice between exporting and foreign investment in oligopolistic industry. We consider both foreign direct investment and an international joint venture, and allow country-specific and firm-specific cost uncertainty. Unlike exporting, either...
Persistent link: https://www.econbiz.de/10010332410
There are four major modes through which firms undertake foreign direct investment (FDI): merger and acquisition (M&A), joint venture, new plant, and others. The four modes of FDI are distinct from each other, and each has its own unique advantages and disadvantages. While a large and growing...
Persistent link: https://www.econbiz.de/10010507293
This article studies the particularities of the creation and operation of foreign investment Joint Ventures in dictatorial regimes, with special emphasis on the relationship between dictatorship and investors. The hotel business in Cuba is studied in depth as a case study, since it is a...
Persistent link: https://www.econbiz.de/10014468655
This paper provides a theoretical formalisation of the joint-venture contract, as an alternative to Foreign Direct Investment (FDI), within a Dissipation of Intangible Assets framework. In a two-period, two-country equilibrium model, we discuss how the threat of knowledge spillover shapes the...
Persistent link: https://www.econbiz.de/10010312564
This paper studies why multinational firms often share ownership of a foreign affiliate with a local partner even in the absence of government restrictions on ownership. We show that shared ownership may arise, if (i) the partner owns assets that are potentially important for the investment...
Persistent link: https://www.econbiz.de/10010296282
Multinationals may enter a host market by different modes of foreign direct investment (FDI). This paper examines the choice of FDI mode, and shows that the profitability of greenfield investment influences this choice not only directly, but also indirectly since it determines the outside option...
Persistent link: https://www.econbiz.de/10010296283
In this paper, we develop a politico-economic model to analyze the relationship between the mode of international investment and institutional quality in a non-democratic capital importing country. Foreign investors from a capital-rich North can either purchase productive assets in a...
Persistent link: https://www.econbiz.de/10010286399
This paper studies why multinational firms often share ownership of a foreign affiliate with a local partner even in the absence of government restrictions on ownership. We show that shared ownership may arise, if (i) the partner owns assets that are potentially important for the investment...
Persistent link: https://www.econbiz.de/10010260614
Die vorliegende Studie untersucht erstmalig für die Ukraine und Polen, wie der Wechsel der vertretenen Regierungspartei … Wechsel der Regierungspartei in der Ukraine eine negative Auswirkung auf das Wirtschaftswachstum hat, in Polen hingegen eine …,28% höher als in einer Region, in der die „pro-russische“ Janukovych-Partei an der Regierungsspitze ist. In Polen dagegen ist …
Persistent link: https://www.econbiz.de/10011688281
Die vorliegende Studie untersucht erstmalig für die Ukraine und Polen, wie stark sich das Wirtschaftswachstum der … Wachstumseffekte in der Ukraine gibt, in Polen hingegen positive. Die Ergebnisse bleiben robust in Bezug auf die Spezifikation der …
Persistent link: https://www.econbiz.de/10011688282