Arbeitspapier

Playing away to win at home

This paper presents a model of the interaction between two rival firms based in the same country. Each firm must decide how to serve a foreign market (export or foreign production) and how much to invest in a corporate-wide asset that reduces production costs and/or augments the willingness-to-pay for their product. In this scenario, the firms’ foreign direct investment decisions are interdependent. Furthermore, strategic motives for FDI relate not to a firm’s domestic, as well as foreign, market profits. One possibility is that a firm sets up overseas production even though its foreign market profits would be higher by exporting.

Sprache
Englisch

Erschienen in
Series: UCD Centre for Economic Research Working Paper Series ; No. WP06/26

Klassifikation
Wirtschaft
Multinational Firms; International Business
Oligopoly and Other Imperfect Markets
Innovation; Research and Development; Technological Change; Intellectual Property Rights: General
Thema
Foreign direct investment
Multinational firm
R&D
Oligopoly

Ereignis
Geistige Schöpfung
(wer)
Leahy, Dermot
Pavelin, Stephen
Ereignis
Veröffentlichung
(wer)
University College Dublin, UCD School of Economics
(wo)
Dublin
(wann)
2006

Handle
Letzte Aktualisierung
10.03.2025, 11:43 MEZ

Datenpartner

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Objekttyp

  • Arbeitspapier

Beteiligte

  • Leahy, Dermot
  • Pavelin, Stephen
  • University College Dublin, UCD School of Economics

Entstanden

  • 2006

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