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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. |
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