National Income Inequality and International Business Expansion
Abstract
We examine the extent to which host country income inequality influences multinational enterprises’ (MNE) expansion strategy for foreign production investment, depending on their specific strategic objectives. Applying a transaction cost framework, we predict that national income inequality has an inverted U-shaped relationship with foreign production investment. As inequality increases, MNEs accrue lower transaction costs arising from...
Paper Details
Title
National Income Inequality and International Business Expansion
Published Date
Dec 7, 2018
Journal
Volume
59
Issue
8
Pages
1630 - 1666
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