Title: The choice and timing of foreign direct investment under uncertainty
Authors: Pennings, E ×
Sleuwaegen, Leo #
Issue Date: Dec-2004
Publisher: Elsevier science bv
Series Title: Economic modelling vol:21 issue:6 pages:1101-1115
Abstract: Ibis paper sheds new light on why timing and entry mode should be considered simultaneously in the international investment literature. We derive the profit levels at which it is optimal to switch from exporting to setting up a wholly owned subsidiary, creating a joint venture, or licensing production to a local firm. The preferred entry mode depends on uncertainty about future profits, tax differentials between the home and the foreign country, the cost advantages of local firms, institutional requirements, and the degree of cooperation between partners in a joint venture. (C) 2004 Elsevier B.V. All rights reserved.
ISSN: 0264-9993
Publication status: published
KU Leuven publication type: IT
Appears in Collections:Department of Managerial Economics, Strategy and Innovation (MSI), Leuven
× corresponding author
# (joint) last author

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