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This paper discusses environmental policies in response to foreign direct investment (FDI) in a symmetrie two …-country setting, where firms' behavior affects government policy decisions. We show that two alternative equilibria with FDI are … possible: (i) one with unilateral FDI, where one firm is a multinational firm, and the other firm is a national firm; (ii) and …
Persistent link: https://www.econbiz.de/10011473794
A two-country model of the FDI versus export decisions of firms is analysed. The analysis considers both the Cournot …' dilemma where both firms are worse off when they both undertake FDI. To avoid the prisoners' dilemma, in an infinitely …-repeated game, the firms can collude over their FDI versus export decisions. Then, a reduction in trade costs may lead firms to …
Persistent link: https://www.econbiz.de/10003854272
This paper discusses environmental policies in response to foreign direct investment (FDI) in a symmetrie two …-country setting, where firms' behavior affects government policy decisions. We show that two alternative equilibria with FDI are … possible: (i) one with unilateral FDI, where one firm is a multinational firm, and the other firm is a national firm; (ii) and …
Persistent link: https://www.econbiz.de/10010260450
A two-country model of the FDI versus export decisions of firms is analysed. The analysis considers both the Cournot …' dilemma where both firms are worse off when they both undertake FDI. To avoid the prisoners' dilemma, in an infinitely …-repeated game, the firms can collude over their FDI versus export decisions. Then, a reduction in trade costs may lead firms to …
Persistent link: https://www.econbiz.de/10010288785
Persistent link: https://www.econbiz.de/10009154948
Persistent link: https://www.econbiz.de/10009526819
When countries compete for the location of a new multinational plant they need to be aware of the profit shifting opportunities this new plant creates for the global multinational firm. By modelling explicitly the multinational's intra-firm transactions, we show that the home market advantage...
Persistent link: https://www.econbiz.de/10010469981
Political risk is a complex phenomenon. This complexity has incentivized scholars to take a piecemeal approach to understanding it. Nearly all scholarship has targeted a single type of political risk (expropriation) and, within this risk, a single type of firm (MNCs) and a single type of...
Persistent link: https://www.econbiz.de/10014140069
This paper studies the entry decision of a multinational enterprise into a foreign market. Two alternative entry modes for a foreign direct investment are considered: Greenfield investment versus acquisition. In contrast to existing approaches, the acquisition price and the profits under both...
Persistent link: https://www.econbiz.de/10010440964
Persistent link: https://www.econbiz.de/10001370976