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Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/24937 
Title: 

Regional Dimensions of Liability of Foreignness: Between a Rock and a Hard Place?

Authors: 
Sofka, Wolfgang
Zimmermann, Jörg
Year of Publication: 
2007
Series/Report no.: 
Papers on Entrepreneurship, Growth and Public Policy No. 1207
Publisher: 
Max Planck Institute of Economics, Jena
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.
Subjects: 
Liability of foreignness
multinational strategy
automotive market
Document Type: 
Working Paper
Appears in Collections:
Discussion Papers on Entrepreneurship, Growth and Public Policy, Max-Planck-Institut für Ökonomik

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