Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
1020499 | Journal of International Management | 2008 | 18 Pages |
Abstract
In this paper we develop optimized localization strategies for multinational firms to overcome their liability of foreignness by adding a regional dimension within a country. 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 intra-national regions under economic stress are more promising markets for foreign car manufacturers as the effects of liability of foreignness are significantly lower there.
Keywords
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Social Sciences and Humanities
Business, Management and Accounting
Business and International Management
Authors
Wolfgang Sofka, Jörg Zimmermann,