The present paper develops a model to analyze the relationship between modes of entry of a Multinational Corporation (MNC) in a vertically differentiated market in a Less Developed Country (LDC) to the Intellectual Property Rights (IPR) protection policy adopted by the LDC government. The MNC...

When technology transfer is costly, a foreign firm and host country government may differ in their preferences over direct entry and acquisition. Government intervention could help induce the socially preferred choice

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...