Leahy, Dermot (2008) Playing away to win at home. Journal of Economics and Business, 60. pp. 455-468. ISSN 0148-6195

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Abstract

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 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.

Item Type:	Article
Keywords:	Foreign direct investment; Multinational firm; R&D; Oligopoly;
Academic Unit:	Faculty of Social Sciences > Economics, Finance and Accounting
Item ID:	8460
Identification Number:	https://doi.org/10.1016/j.jeconbus.2007.08.001
Depositing User:	Dermot Leahy
Date Deposited:	18 Jul 2017 08:41
Journal or Publication Title:	Journal of Economics and Business
Publisher:	Elsevier
Refereed:	Yes
URI:	Publisher

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