Technological Asymmetries and Strategic Plant Location: The Case of Export-Platform Foreign Direct Investment

@inproceedings{Guariglia2006TechnologicalAA,
  title={Technological Asymmetries and Strategic Plant Location: The Case of Export-Platform Foreign Direct Investment},
  author={Alessandra Guariglia and Arijit Mukherjee and Kullapat Suetrong},
  year={2006}
}
We consider the plant location decision of a multinational corporation (MNC), which has the option to invest in a more or in a less technologically lagging country, and which aims to use its foreign plant as an export-platform. We show that the plant location decision of the MNC depends on whether the host country firms can export, and on whether they are able to compete in the product market. We also show that a conflict of interest does not necessarily arise between the plant location… CONTINUE READING

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