Organization of Multinational Activities and Ownership Structure

Arbeitspapier

We develop a model in which multinational investors decide about the modes of organization, the locations of production, and the markets to be served. Foreign investments are driven by market-seeking and cost-reducing motives. We further assume that investors face costs of control that vary among sectors and increase in distance. The results show that (i) production intensive sectors are more likely to operate a foreign business independent of the investment motive, (ii) that distance may have a non-monotonous effect on the likelihood of horizontal investments, and (iii) that globalization, if understood as reducing distance, leads to more integration.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Munich Discussion Paper ; No. 2006-23

Classification and Topics

• Classification: Wirtschaft ; Multinational Firms; International Business ; Contracting Out; Joint Ventures; Technology Licensing ; Firm Organization and Market Structure ; Organization of Production ; Organizational Behavior; Transaction Costs; Property Rights
• Subject: Multinationals ; Joint ventures ; Technology spillovers ; Distance ; Horizontal and vertical investments ; Ownership structure ; Multinationales Unternehmen ; Eigentümerstruktur ; Globalisierung ; Auslandsinvestition ; Rentabilität ; Wirtschaftsmodell

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Mugele, Christian ; Schnitzer, Monika
• Event: Veröffentlichung
• (who): Ludwig-Maximilians-Universität München, Volkswirtschaftliche Fakultät
• (where): München
• (when): 2006

Further information

• DOI: doi:10.5282/ubm/epub.893
• Handle: http://hdl.handle.net/10419/104197
• URN: urn:nbn:de:bvb:19-epub-893-5
• Last update: 10.03.2025, 11:42 AM CET