Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/17906
Authors: 
Kleinert, Jörn
Year of Publication: 
2000
Series/Report no.: 
Kiel Working Paper 969
Abstract: 
This paper brings forward a three-country model to analyze the internationalization process in the age of globalization. It is shown that investment of one company increases not only the incentive to invest in another country for every national competitor but for third country's companies as well. That results from the adjustment of the host country's companies which react to their shrinking market share by reducing output and raising the price of their goods. Some host country's companies exit the market. The results are used to explain the surge of foreign direct investment since the mid-1980s.
Subjects: 
general equilibrium
globalization
multinational enterprises
JEL: 
F12
F21
F23
Document Type: 
Working Paper

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