The Direct Investment Structure of West German Multinational Enterprises

Foreign Direct Investment and the Multinational Enterprise

Market expansion versus cost reduction: a financial analysis of foreign direct investment advantages for multinational enterprises

By testing a large sample of US-based multinational enterprises (MNEs), we attempt to microscope the relations between FDI advantages and excess market value created thereby. Two most commonly pursued FDI advantages—market expansion and cost reduction—come under the analysis. We find that the overseas divisions of US-based MNEs have significant market expansion advantage over the domestic divis...

The Strategy of Korean Multinational Enterprises – Multiple versus Single plant

Using firm-level panel data for Korean MNEs, we make a distinction between being the only affiliate of a parent firm and being the one of the multiple affiliates of a parent firm. Comparisons of correlations between purchases and sales of each group of the foreign affiliates show distinctive difference in the motivations of FDI and the multinational activities, due to the difference in the numb...

Major Determinants of Foreign Direct Investment in the West African Economic and Monetary Region

The main concern of this paper is to answer the question of the determinants of FDI inflows to West African Economic and Monetary Union (WAEMU). The literature on FDI recognizes not only the existence of gaps between domestic savings and investment in most developing countries but also that FDI constitutes a cure capable to bring the latest technology and management know-how into these countrie...

Incentive Regulation of Multinational Enterprises∗

Sectors with a long regulatory tradition have recently experienced intense activity by multinationals whose international operations and relocation threats represent a new cause for concern for regulators. The present paper analyses a multinational serving two countries and being regulated by two uninformed national authorities. The firm is shown to favor, or cross-subsidize, the country with a...