Diversified boundaries of the firm
Preprint, External research report
- Publisher: Institute of Developing Economies (IDE-JETRO)
IDE Discussion Paper = IDE Discussion Paper,
Manufacturing industries | Technology gaps | JEL:D21 - Firm Behavior | Globalization | Home advantage | Boundaries of firms | Telephone | JEL:O12 - Microeconomic Analyses of Economic Development | Developing countries,China,Manufacturing industries,Industrial management,Globalization,Industrial technology,Telephone,Diversification,Technology gaps,Home advantage,Boundaries of firms | JEL:O14 - Industrialization; Manufacturing and Service Industries; Choice of Technology | JEL:M11 - Production Management | Industrial management | China | Developing countries | Industrial technology | Diversification
We analyze diversification of boundaries of local firms in developing countries under the economic globalization. The globalization has an aspect of homogenization of the world economy, but also has another aspect of diversification through international economic activities. Focusing on boundary-level of the firm, this article shows that the diversification from a comparison with boundaries of foreign firms in developed countries is brought by a disadvantage of technology deficit and a home advantage as local firms.