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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.:Jena economic research papers 2007,023
Abstract:In this paper we develop optimized localization strategies for multinational firms to over-come their liability of foreignness by adding a regional dimension. We explore concep-tually whether economic stress in a region has a mitigating or reinforcing effect. We test his 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
JEL:F23
L62
M10
Document Type:Working Paper
Appears in Collections:Jena Economic Research Papers, MPI für Ökonomik

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