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The paper tries to evaluate the optimal entry mode of a Multinational Company that is choosing among export, fragmented … installation cost is sufficiently high then the firm will find it profitable to export the finished product to the LDC market and … place in LDC. -- Export ; Assembly-line FDI ; FDI with Complete Production ; IPR Protection …
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In this paper we study the choice between exporting and foreign direct investment (FDI) in the Cournot duopoly framework. First, we identify the conditions necessary for exporting and FDI, depending on costs of exporting and the cost of foreign investment. Then, we discuss various...
Persistent link: https://www.econbiz.de/10012010858
The paper tries to evaluate the optimal entry mode of a Multinational Company that is choosing among export, fragmented … installation cost is sufficiently high then the firm will find it profitable to export the finished product to the LDC market and …
Persistent link: https://www.econbiz.de/10014216463
Recent empirical research documents a tendency of affiliates of multinational enterprises to bunch around zero reported profit. Setting up a model that allows for profitable and loss-making affiliates of multinationals, we show that profit shifting to a low-tax country as well as a loss-related,...
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productive ones will export. In addition, the most productive firms are shown to prefer whole ownership to a joint venture. These …
Persistent link: https://www.econbiz.de/10003301155