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...

In the paper, the impact of the operation of international corporations on the exports of domestic firms is investigated in the regional context. One of the often mentioned advantages accompanying the inflow of direct foreign investment to countries undergoing systemic transformation is the role...