Foreign Direct Investment, Intra-firm Trade and Ownership Structure.

Asymmetric information about true opportunity cost in trade between a multinational and its foreign affiliate can alleviate the hold-up problem in foreign direct investment. Selling shares in the affiliate to locals is also beneficial because it increase the parent multinational's information rent that is protected from a host government's confiscatory taxation.

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Year of publication:	2001
Authors:	Konrad, K.A. ; Lommerud, K.E.
Institutions:	Institutt for Økonomi, Universitetet i Bergen
Subject:	FOREIGN INVESTMENTS \| TRADE \| INFORMATION

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Series:	Norway; Department of Economics, University of Bergen.
Type of publication:	Book / Working Paper
Notes:	19 pages
Classification:	F23 - Multinational Firms; International Business ; F34 - International Lending and Debt Problems ; G15 - International Financial Markets ; H87 - International Fiscal Issues
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005675286