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Author:Moner-Colonques, R.
Orts. V.
Sempere-Monerris, J. J.
Title:Asymmetric demand information and foreign direct invstment
Journal:Scandinavian Journal of Economics
2007 : VOL. 109:1, p. 93-106
Index terms:asymmetric information
direct investment
international
oligopoly
Language:eng
Abstract:This article examines the FDI (foreign direct investment) versus exports decision of firms competing in an oligopolistic market under demand uncertainty and asymmetric information. It compares a firm that chooses to export and a firm that chooses to set up a plant in the host market and has superior information about local market demand. Articles analysis is robust to price competition and to the possibility that a foreign firm can engage in both FDI and exports.
SCIMA record nr: 264917
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