Footloose multinationals: Extending the internalization theory

Why are Multinationals ‘Footloose’?

Conclusions The ‘footloose’ effect of MNE ownership is attributable to the nature of the plants they close. Multinationals are more likely to close plants that are weakest relative to the firm. There is a high degree of similarity between the plants closed by multiplant firms regardless of whether they are MNE or not. However, MNEs offshore high wage plants while domestic multiplant firms outso...

Globalisation , Productivity and Technology Research Paper 2009 / 27 Why are Multinationals “ Footloose ” ?

This paper investigates why multinational ownership is found to increase the probability that a plant will exit. It does so by using Japanese plant data linked to firm data. Plants belonging to a multinational are 9 percentage points more likely to exit when plant, firm and industry characteristics are conditioned on. We find that the “footloose” effect is attributable to multinationals closing...

Identified and introjected forms of political internalization: extending self-determination theory.

Canadian voters' reasons for following political events were assessed prior to the 1992 Constitutional Referendum and the 1993 federal election. Results showed that reasons reflecting identification were endorsed more frequently than those reflecting introjection, and distinctive patterns of cognitions, emotions, and actions were associated with the 2 types of internalization. Identification wa...

The Internalization Theory in International Business

Multinationals , Endogenous Growth and Technological Spillovers : Theory and Evidence

FDI has received surprisingly little attention in theoretical and empirical work on openness and growth. This paper presents a theoretical growth model where MNCs directly affect the endogenous growth rate via technological spillovers. This is novel since other endogenous growth models with MNCs, e.g. the Grossman-Helpman model, assume away the knowledge-spillovers aspect of FDI. We also presen...