Regional Dimensions of Liability of Foreignness: Between a Rock and a Hard Place?

In this paper we develop optimized localization strategies for multinational firms to overcome their liability of foreignness by adding a regional dimension. We explore conceptually whether economic stress in a region has a mitigating or reinforcing effect. We test this analytical framework empirically on the highly internationalized German car market and find that economically depressed regions are promising stepping stones into foreign markets.

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Year of publication:	2007
Authors:	Sofka, Wolfgang ; Zimmermann, Jörg
Publisher:	Jena : Max Planck Institute of Economics
Subject:	Multinationales Unternehmen \| Standortwahl \| Internationale Markteintrittsstrategie \| Strukturschwacher Raum \| Kraftfahrzeugindustrie \| Deutschland \| Alte Bundesländer \| Neue Bundesländer \| Liability of foreignness \| multinational strategy \| automotive market

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Series:	Papers on Entrepreneurship, Growth and Public Policy ; 1207
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	543858014 [GVK] hdl:10419/24937 [Handle]
Source:	EconStor

Persistent link: https://www.econbiz.de/10010263575