An International Trade and Investment Theory of the Firm
            
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Hirsch, Seev

doi:10.1093/oxfordjournals.oep.a041344

Cited by 222 publications

(96 citation statements)

References 9 publications

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“…The displacement of export by FDI due to a combination of location and ownership advantages under imperfect market conditions has been demonstrated in other studies (Adler & Stevens, 1974;Buckley & Casson, 1981;Chang & Gayle, 2009;Hirsch, 1976). Adler and Stevens (1974) have found that exports are substituted for by foreign sales of subsidiaries to varied degrees, when the products are perfect or partial substitutes under constant returns to scale.…”

Section: Substitution Between Fdi and Exportmentioning

confidence: 78%

A pendulum gravity model of outward FDI and export

Liu

Wang

et al. 2016

International Business Review

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A B S T R A C TThe paper proposes a pendulum gravity model of outward FDI and export. Outward FDI and export can be complementary or substitute, depending on the development stages of outward FDI. The development of outward FDI is accompanied by advancements in productivity, technology and favorable transformations in factor endowment differences, which can be reflected in the ratio of export to outward FDI. At early stages of outward FDI undertakings, the ratio of export to outward FDI is greater or much greater than the world's average, outward FDI and export are conjectured to be complementary with our analytical framework. As outward FDI matures, the pendulum swings to the other side, i.e., the ratio of export to outward FDI becomes smaller than the world's average. Outward FDI and export turn into substitute then. Empirical results and findings from examining two panel data sets support our conjecture and the proposed model, which integrate the two seemingly opposing sets of literature.

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Section: Substitution Between Fdi and Exportmentioning

confidence: 78%

A pendulum gravity model of outward FDI and export

Liu

Wang

et al. 2016

International Business Review

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“…The 'economic school' views internationalization as engagement in cross border activities motivated by rational economic considerations (e.g., Buckley/Casson 1976, 1998, Dunning 1977, 1988, Hirsch 1976, Rugman 1981. Firms choose their foreign market-servicing modes by evaluating economic costs of different transactions and selecting the mode that minimizes overall costs.…”

Section: Internationalization: a Brief Literature Reviewmentioning

confidence: 99%

“…Following Buckley andCasson (1976, 1998), Buckley andHashai (2004, 2005), Hirsch (1976), Casson (2000) and others, we view the firm as an organism, performing three semi autonomous functions: R&D, production and marketing.…”

Section: Building Blocks Of the Expanded Product Cycle Frameworkmentioning

confidence: 99%

“…The cost of interaction with customers similarly rises with distance and with the time it takes to provide the relevant firm specific services. This is particularly relevant to international interactions where additional costs associated with distance are incurred due to the need to communicate in two or more languages, use multiple currencies, and accommodate different legal systems as well as tax and regulatory regimes (Contractor 1990, Hirsch 1976, Hymer 1976, Kogut/Singh 1988, Kogut/ Zander 1993, Rangan/Adner 2001. Distance premium thus has geographic, economic and cultural components (Hirsch/Hashai 2000, Hofstede 1980, Johanson/ Vahlne 1977, 1990.…”

Section: The Cost Of Cross-border Interactions: Distance Premiummentioning

confidence: 99%

“…Assuming that demand and supply capacities are independent of the chosen location of specific value adding activities, costs minimisation is strictly equivalent to profit maximization of internationalising firms. (Buckley/Casson 1976, 1998, Dunning 1993, Hirsch 1976, Martin/Salmon 2003, Rugman 1981.…”

Section: The Internationalization Of the Firm's Value Adding Functionsmentioning

confidence: 99%

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The product cycle revisited: Knowledge intensity and firm internationalization

2006

Self Cite

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and Key Results■ This paper presents an expanded version of the product cycle framework, which illustrates how the role of R&D, production and marketing activities, as a salient determinant of competitive advantage, evolves along the product cycle. The framework considers the implications of these changes for the internationalization of firms marketing products belonging to the different phases of the cycle.■ The paper shows how changes in "knowledge-intensity" of products along the product cycle are interrelated with changes in "service-intensity" and "distance premium" and thus enable to predict the sequence in which low knowledge intensive and high knowledge intensive firms internationalize R&D, production and marketing activities.

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The Impact of Competition and Consumer Preferences on the Location Choices of Multinational Enterprises

Adler

Hashai

2015

Global Strategy Journal

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In this study, we argue that when undertaking location decisions, multinational enterprises (MNEs) ought to incorporate their competitors' reactions to such decisions as well as consumer preferences for location, in addition to the more standard cost‐benefit analyses. We view MNEs as networks of activities connected via product and knowledge flows and develop a game‐theoretic, location‐allocation mathematical model. A series of computational analyses leads to competitive outcomes and location choices, where even without an explicit modeling of inter‐region differences, MNEs show strong tendency toward regionally focused location configurations. Importantly, such regionally focused location configurations can take the shape of regionally focused MNEs or of globally dispersed MNEs with regional structures.

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An International Trade and Investment Theory of the Firm 1

Cited by 222 publications

References 9 publications

A pendulum gravity model of outward FDI and export

A pendulum gravity model of outward FDI and export

The product cycle revisited: Knowledge intensity and firm internationalization

The Impact of Competition and Consumer Preferences on the Location Choices of Multinational Enterprises

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