Playing away to win at home

Arbeitspapier

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.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: UCD Centre for Economic Research Working Paper Series ; No. WP06/26

Classification and Topics

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

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Leahy, Dermot ; Pavelin, Stephen
• Event: Veröffentlichung
• (who): University College Dublin, UCD School of Economics
• (where): Dublin
• (when): 2006

Further information

• Handle: http://hdl.handle.net/10419/72408
• Last update: 10.03.2025, 11:43 AM CET