We consider an exporting firm facing FX risk. We show that FX options are not used for hedging, if there is no ex-post production flexibility. Hence, in the standard setting of having no ex-post optionality, hedging with forwards is the best choice.The value of FX options for hedging arises as...

Multinational firms from Latin America, or Multilatinas, have recently emerged among the largest multinational firms in the World. This paper describes the phenomenon and argues that the emergence of Multilatinas is a consequence of the process of economic liberalization of the decade of the...

Ownership Advantage, a sub-paradigm of OLI paradigm formulated by J.H. Dunning is a set of determinant factors of foreign direct investment (FDI) and the foreign activities of multinational enterprises (MNEs). For making a strategic decision of FDI MNEs must have some firm specific advantages...

Critical scholarship views corporate accumulation – a fundamental driver of capitalism – as inherently dispossessive, involving violence and expropriation. However, dispossession also involves practices of legitimation that are related to coercive violence in complex ways. We examine the...

The aim of this paper is to analyze the internationalization strategies followed by enterprises in the world, distinguishing between big enterprises and other firms (SMEs). In particular, we want to delve into determinants of internationalization and processes that allow companies to perform in...

Firm internationalisation has been a central topic of scholarly interest in international business for decades. However, the role of competitive pressure in firms’ home markets for firm internationalisation has not been investigated for the full variety of market types, despite the central...

We determine how time delays affect international trade, using newly-collected World Bank data on the days it takes to move standard cargo from the factory gate to the ship in 126 countries. We estimate a modified gravity equation, controlling for endogeneity and remoteness. On average, each...

We join the new trade theory with a model of choice between bank and bond financing to show the differential effects of financial policy on the distribution of firm size, gains from trade, and the real exchange rate in a small open economy. Increasing bank efficiency and reducing bond...

This paper explores the dynamic relationships between foreign direct investment (FDI), international trade, and economic development. First, emphasizing the pivotal role of multinational enterprises (MNEs) - particularly in the context of Global Value Chains (GVCs) - it underscores how FDI and...