Incertitude sur le change et multinationalisation en concurrence imparfaite

Larbi Dohni

Revue économique, 2001, vol. 52, issue 4, 791-810

Abstract: This paper shows how, in a duopoly framework, uncertainty may provide an incentive for multinational production. Given its sequential nature, foreign direct investment can play a strategic role because, by establishing plants in more than one country, it enables the firm to relocate production once these costs are known. Owing to the asymmetry between a multinational enterprise and a single nation firm, production flexibility affects the outcomes of the competition between these firms. Classification JEL : F23, L13

JEL-codes: F23 L13 (search for similar items in EconPapers)
Date: 2001
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