search query: @indexterm Foreign investment / total: 1949
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Author:Proff, H.
Title:Negative multi-market spillover effects of foreign direct investment in response to investment incentives: The challenge for MNCs
Journal:Management International Review
2004 : VOL 44:4, p. 397-416
Index terms:Multinational companies
Foreign investment
Direct investment
Competition
Models
Freeterms:FDI
Language:eng
Abstract:Multi-market (hereafter as: m-m.) competition occurs when many multinational companies (MNCs) simultaneously invest in many developing countries in a few industries like cars or electronic goods, for which investment incentives exist. Resulting negative m-m. spillover effects have largely been ignored in theories of foreign direct investment (FDI) leading to a need of combining industrial organization models with the theories of FDI. Based on theoretically deduced hypotheses and empirical testing, reducing product substitution and/or the diseconomies of scale and scope within and btw. such MNCs are the resulting managerial challenges.
SCIMA record nr: 257430
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