From access to acceptance: The costs of crossing borders in the global economy

Sarianna M. Lundan ()
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Sarianna M. Lundan: University of Bremen - International Management and Governance & ZenTra

No 34 / 2014, ZenTra Working Papers in Transnational Studies from ZenTra - Center for Transnational Studies

Abstract: This paper provides an overview of the different kinds of distance-related barriers related to crossborder investment. Expanding the economic footprint of the firm comes at the cost of a corresponding increase in the complexity of coordination. Different forms of governance, whether inside the firm or as part of its network of external relationships, have the aim of reducing uncertainty and creating a more predictable environment. The impact of conventional distancerelated barriers, as well as the more difficult institutional barriers reflecting differences in norms and beliefs, on the costs and methods of coordination adopted by multinational firms are explored.

Keywords: transnational firms; foreign investment; governance; entry barriers; institutional distance (search for similar items in EconPapers)
JEL-codes: F21 F23 M16 (search for similar items in EconPapers)
Pages: 15 pages
Date: 2014-06, Revised 2014-06
New Economics Papers: this item is included in nep-cse and nep-int
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http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2454524 First version, 2014 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:zen:wpaper:34

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