The Avoidance of Restrictive Monetary Policies in Host Countries by Multinational Firms

1977 ◽  
Vol 9 (4) ◽  
pp. 562 ◽  
Author(s):  
Robert G. Hawkins ◽  
Donald Macaluso
Keyword(s):  
Multinational Firms ◽  
Host Countries ◽  
Monetary Policies

The dilemma of institutional duality and multinational firms 1967-2017

2018 ◽  
Vol 26 (2) ◽  
pp. 145-172 ◽  
Author(s):  
Akiebe Humphrey Ahworegba
Keyword(s):  
Multinational Corporations ◽  
Design Methodology ◽  
Multinational Firms ◽  
Management Approach ◽  
Institutional Pressures ◽  
Host Countries ◽  
Content Type ◽  
External Pressures ◽  
Institutional Contexts ◽  
Institutional Duality

Purpose The purpose of this paper is to improve the understanding of the dilemma of institutional duality (ID) confronting multinational corporations and to propose a workable solution for this problem. Design/methodology/approach The author has searched the literature using several terms directly related to the dilemma of ID and multinational firms. Findings The findings reveal that to attain “legitimacy”, subsidiaries strive to balance institutional pressures stemming from external environments in the host country and their parent organizations. Understanding institutional theories of multinational corporations enables the subsidiaries to manage external pressures. ID impact varies among subsidiaries, depending on institutional contexts and internal strategies of subsidiaries. Originality/value An “institutional duality incidence model” portraying how dual institutions make “legitimacy” problematic for subsidiaries is proposed. A framework for identifying factors generating ID dilemma and their management approach is also proposed. It is concluded that a multinational corporation that recognizes ID as a central concern is more likely to achieve and maintain a higher level of harmony with its subsidiaries and host countries.

The largest financial groups from emerging economies

2018 ◽  
Vol 13 (5) ◽  
pp. 1050-1069 ◽  
Author(s):  
J. Francois Outreville
Keyword(s):  
Foreign Direct Investment ◽  
Emerging Economies ◽  
Direct Investment ◽  
Multinational Firms ◽  
Emerging Countries ◽  
Strong Impact ◽  
Internationalization Process ◽  
Host Countries ◽  
Content Type ◽  
Financial Groups

Purpose Numerous articles contain recommendations as to how emerging countries can attract foreign direct investment on terms that are beneficial to both the investing firm and the host society but very few explore the conditions for firms from emerging countries to invest abroad. The purpose of this paper is twofold: the first is the documentation of the preferred locations of foreign affiliates for the largest financial groups headquartered in emerging countries; and, second, is to identify some of the determinants associated with the location-specific advantages of these host countries. Design/methodology/approach The analysis of the internationalization process of these groups is based on a list of top financial groups ranked by total assets. In the empirical section, the factors that explain the choice of these locations by multinational firms are categorized as resources seeking, market seeking, efficiency-seeking variables and cultural variables. Findings There is empirical evidence that institutions prefer to invest in foreign locations that minimize some dimensions of the culture. Other factors like the role of efficiency variables, i.e. trade efficiency, political risk and government effectiveness, in host countries also have a strong impact on the determinants of the internationalization process. Originality/value The paper puts forward a framework for analyzing determinants of foreign direct investment of multinational financial groups from emerging economies.

The State Expropriation Risk and the Pricing of Foreign Earnings

2021 ◽  
Author(s):  
Iftekhar Hasan ◽  
Ibrahim Siraj ◽  
Amine Tarazi ◽  
Qiang Wu
Keyword(s):  
Multinational Firms ◽  
Value Relevance ◽  
Management Practice ◽  
Host Countries ◽  
Foreign Earnings ◽  
The Us ◽  
Country Factors ◽  
Expropriation Risk ◽  
Trade Relationship ◽  
Relationship Of

We examine the pricing of U.S. multinational firms’ foreign earnings in regard to their risk of expropriation and unfair treatment by the governments of the countries in which their international subsidiaries are located. Using 8,891 firm-years observations during the 2001-2013 period, we find that the value relevance of foreign earnings increases with the improvement of the protection from state expropriation risk in the subsidiary host-countries. Our results are not driven by the earnings management practice, investor distraction, country informativeness, and political and trade relationship of a foreign country with the US. Furthermore, our results are robust to the confounding effects of country factors, measurement error in the variable of the risk of expropriation, influence of private contracting institutions, and endogeneity in the decision of location of subsidiaries.

scholarly journals Trends and Determinants of Korean Outward FDI

2009 ◽  
Vol 27 (1) ◽  
pp. 126-154 ◽  
Author(s):  
Jungmin Kim ◽  
Dong Kee Rhee
Keyword(s):  
Economic Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Multinational Firms ◽  
Multinational Firm ◽  
Location Decisions ◽  
Outward Foreign Direct Investment ◽  
Outward Fdi ◽  
Host Countries ◽  
Distinctive Features

This paper examines the trends and determinants of Korean outward foreign direct investment and the extent to which location decision explanation needs to be nested within the general theory of the multinational firm. In the context of investment development path developed by Dunning and Narula, we examine the important factors for the location decisions of Korean outward foreign direct investment, considering host countries at very different stages of economic development. In line with this objective, we test empirically the determinants of Korean outward investment using macro economic factors of host countries. Thus, we identify several factors that impact on such trends and develop hypotheses that could explain the phenomenon generically. We test our hypotheses using official Korean outward FDI data collected from 1994 to 2005. The behavior of Korean multinational firms shows several distinctive features. As a result, we find that the dynamic effects of economic development have influenced on the changes of outward FDI characteristics.

Outsourcing and Offshoring Finance Activities

2010 ◽  
pp. 1857-1870
Author(s):  
Siri Terjesen
Keyword(s):  
Multinational Firms ◽  
Host Countries ◽  
Theoretical Frameworks ◽  
Case Examples ◽  
Socioeconomic Issues ◽  
Depth Interviews

This chapter reviews the outsourcing and offshoring of finance activities and the socioeconomic implications for home and host countries. Part one provides an overview of the hierarchy of finance activities in the firm and the phenomenon of outsourcing and offshoring of these activities. The phenomenon is then examined from a firm perspective, highlighting the major drivers, trends and issues using theoretical frameworks and case examples from the author’s in-depth interviews with 37 managers at 25 multinational firms. Finally, the socioeconomic issues and implications of offshoring activities are discussed in the context of both home and host countries.

Patterns of Technology Acquisition

2018 ◽  
pp. 186-212
Author(s):  
António Carrizo Moreira
Keyword(s):  
Multinational Firms ◽  
The Other ◽  
Host Countries ◽  
Technology Acquisition ◽  
Other Hand ◽  
Cumulative Process ◽  
Global World ◽  
Over Time

Although MNEs are important players in the present global world, there has been a debate regarding, on one hand, how MNEs contribute to the development of indigenous firms in host countries, and on the other hand, how indigenous suppliers are able to cope with their international technology demanding clients. This chapter analyzes the patterns of technology acquisition of 40 firms that supply eight multinational firms that belong to four different industries. It is possible to conclude that there are certain differences among foreign and indigenous suppliers as well across the industries they belong to. These differences are the result of a cumulative process over time, which reflect the different performances of the companies and their relationships with the environment.

Outsourcing and Offshoring Finance Activities

2011 ◽  
pp. 209-228
Author(s):  
Siri Terjesen
Keyword(s):  
Multinational Firms ◽  
Host Countries ◽  
Theoretical Frameworks ◽  
Case Examples ◽  
Socioeconomic Issues ◽  
Depth Interviews

This chapter reviews the outsourcing and offshoring of finance activities and the socioeconomic implications for home and host countries. Part one provides an overview of the hierarchy of finance activities in the firm and the phenomenon of outsourcing and offshoring of these activities. The phenomenon is then examined from a firm perspective, highlighting the major drivers, trends and issues using theoretical frameworks and case examples from the author’s in-depth interviews with 37 managers at 25 multinational firms. Finally, the socioeconomic issues and implications of offshoring activities are discussed in the context of both home and host countries.

Foreign Direct Investment and International Technology Diffusion

2019 ◽  
Author(s):  
Difei Geng ◽  
Kamal Saggi
Keyword(s):  
Developing Countries ◽  
Foreign Direct Investment ◽  
Technology Diffusion ◽  
Direct Investment ◽  
Multinational Firms ◽  
Industrialized Countries ◽  
Host Countries ◽  
International Technology Diffusion ◽  
International Mergers ◽  
Local Firms

Foreign direct investment (FDI) plays an important role in facilitating the process of international technology diffusion. While FDI among industrialized countries primarily occurs via international mergers and acquisitions (M&As), investment headed to developing countries is more likely to be greenfield in nature; that is, it involves the establishment or expansion of new foreign affiliates by multinational firms. M&As have the potential to yield productivity improvements via changes in management and organization structure of target firms, whereas greenfield FDI leads to transfer of novel technical know-how by initiating the production of new products in host countries as well as by introducing improvements in existing production processes. Given the prominent role that multinational firms play in global research and development (R&D), there is much interest in whether and how technologies transferred by them to their foreign subsidiaries later diffuse more broadly in host economies, thereby potentially generating broad-based productivity gains. Empirical evidence shows that whereas spillovers from FDI to competing local firms are elusive, such is not the case for spillovers to local suppliers and other agents involved in vertical relationships with multinationals. Multinationals have substantially increased their investments in research facilities in various parts of the world and in R&D collaboration with local firms in developing countries, most notably China and India. Such international collaboration in R&D spearheaded by multinational firms has the potential to accelerate global productivity growth.

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