Abstract Recent literature shows that the spike in uncertainty during political elections harms firms’ investment. Bridging insights from international business and science, we argue effect of on investment activities is contingent country’s electoral system. In particular, expect negative corporate to be smaller for firms operating plurality systems. We test our theory using a panel dataset li...

Multinationals often serve foreign markets by producing domestically and exporting as well as by investing directly in foreign production facilities. We argue that if the multinational competes in an oligopolistic market characterized by strategic complements then there are strategic reasons to use two production facilities -committing to a second source allows the firm to keep average cost low...

A country specializing in a high technology industry may find that excess returns stemming from innovation are reallocated overseas as foreign-based multinationals access ongoing domestic R&D through alliances with or acquisition of established domestic start-ups. Computer simulation illustrates this process in the context of the current US specialization in biotechnology.

Abstract Research Summary We investigate how the presence of populist rulers affects foreign direct investment in democratic countries. Our analysis sheds light on mechanisms by which this political force impacts firms' decisions, considering effect institutions and internationalization strategies at firm level global arena. test our theory using instrumental variables with a panel dataset US m...