Trade, Foreign Direct Investment or Acquisition: Optimal Entry Modes for Multinationals

Research, Preprint OPEN
Theo Eicher; Jong Woo Kang; (2004)
  • Publisher: Center for Economic Studies and Ifo Institute (CESifo) Munich
  • Subject: O00
    • ddc: ddc:330
      jel: jel:O00

We examine multinationals’ optimal entry modes into foreign markets as a function of market size, FDI fixed costs, tariffs and transport costs. Our results highlight why large countries are more likely to attract acquisition investment, while intermediate-sized countr... View more
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