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    Playing away to win at home


    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:

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