New Economics Papers
on Law and Economics
Issue of 2007‒03‒17
three papers chosen by
Jeong-Joon Lee, Towson University

  1. Bureaucrats or Politicians? Part I: A Single Policy Task By Alberto Alesina; Guido Tabellini
  2. Bureaucrats or Politicians? Part II: Multiple Policy Tasks By Alberto Alesina; Guido Tabellini
  3. Regional Dimensions of Liability of Foreignness: Between a Rock and a Hard Place? By Wolfgang Sofka; Jörg Zimmermann

  1. By: Alberto Alesina; Guido Tabellini
    Date: 2007–03–14
  2. By: Alberto Alesina; Guido Tabellini
    Date: 2007–03–14
  3. By: Wolfgang Sofka; Jörg Zimmermann
    Abstract: 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.
    Keywords: Liability of foreignness, multinational strategy, automotive market
    Date: 2007–03

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