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| Tekijä: | Balsvik, R. |
| Otsikko: | Multinationals' mode of entry in the presence of upstream spillovers |
| Lehti: | Economica
2010 : APR, VOL. 77:306, p. 334-351 |
| Asiasana: | multinational companies market entry foreign investment direct investment models |
| Vapaa asiasana: | FDI |
| Kieli: | eng |
| Tiivistelmä: | Multinational enterprises' (MNEs) mode of foreign expansion may depend on their expectations of spillovers (henceforth as: s-ps). Considered is a monopolist with a vertical production structure with outsourcing (here as: outs.) of intermediates to a host country firm being one of three possible entry modes. Threat of entry of a new input producer is generated by s-ps. With incomplete outs. contracts resulting in the two firms negotiating for the way of sharing the potential surplus, upstream s-ps. don't necessarily benefit the downstream MNE. If the MNE instead allows the supplier to set the price of intermediates, it clearly benefits from upstream s-ps. |
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