Risk and the strategy of foreign location choice in regulated industries
Abstract
We argue that firms in regulated industries react to macroeconomic and policy risks in sharply different ways. While they seek to avoid countries with high levels of macroeconomic uncertainty, we predict that they find it more attractive to expand into countries characterized by governments with discretionary policymaking capacities so as to be able to negotiate favorable conditions of entry. We also argue that firms are heterogeneous in their...
Paper Details
Title
Risk and the strategy of foreign location choice in regulated industries
Published Date
May 8, 2008
Journal
Volume
29
Issue
10
Pages
1097 - 1115
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