1174 Trade , Foreign Direct Investment or Acquisition : Optimal Entry Modes for Multinationals

@inproceedings{Eicher19871174T,
  title={1174 Trade , Foreign Direct Investment or Acquisition : Optimal Entry Modes for Multinationals},
  author={Theo S. Eicher},
  year={1987}
}
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 countries may be served predominantly through trade, even in the presence of high tariffs. Small countries are most likely to experience either FDI or no entry. We also show how these results vary with the competition intensity in the… CONTINUE READING

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