This paper develops a game-theoretical model to investigate heterogeneous firms¡¯ entry mode choice of international expansion. The distinct feature of this paper is that exchange rate, R&D competition, and intra-industry firm heterogeneity are incorporated into the theoretical framework. The...

Taiwan has started to liberalize its exchange rate and foreign investment policies since the mid 1980s. The subsequent considerable appreciation of its currency and increasing labor cost has stimulated many Taiwanese firms to actively undertake outward foreign direct investment (FDI). The...