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Title:Regional dimensions of liability of foreignness: between a rock and a hard place? PDF Logo
Authors:Sofka, Wolfgang
Zimmermann, Jörg
Issue Date:2007
Series/Report no.:Papers on entrepreneurship, growth and public policy 1207
Abstract:In this paper we develop optimized localization strategies for multinational firms to overcome their liability of foreignness by adding a regional dimension. We explore conceptually whether economic stress in a region has a mitigating or reinforcing effect. We test this analytical framework empirically on the highly internationalized German car market and find that economically depressed regions are promising stepping stones into foreign markets.
Subjects:Liability of foreignness
multinational strategy
automotive market
Document Type:Working Paper
Appears in Collections:Discussion Papers on Entrepreneurship, Growth and Public Policy, MPI für Ökonomik

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