Leahy, Dermot; Pavelin, Stephen - In: Open Economies Review 15 (2004) 4, pp. 363-374
We develop a model to illustrate a motive for FDI that derives from a firm's overall locational strategy. A firm, that initially has a plant in its home country, may choose to also have a foreign plant in order to improve its bargaining position versus local labour unions. This permits the firm...