Comparative Research Between Export and FDI in MNEs Entry Mode
Export and foreign direct investment (FDI) are two important entry modes which MNEs attend international cooperation and communication.An integrated theoretical framework examines the determinants of MNEs entry decisions as a function of tariffs,transport costs,FDI fixed costs,subsidies and market sizes.A model of two stages and four players has been constructed based on complete information dynamic game theory.The paper shows export and FDI as entry modes have no absolute advantages and absolute disadvantages by backwards induction.Which way is better will depend on Nash equilibriums which occurred in MNEs and governments through interaction among tariffs,transport costs,FDI fixed costs,subsidies and market sizes.The paper also shows the bigger size of market in the two countries,the more welfare it will get.Tariffs will decrease both countries welfare in a long time and positive and suitable subsidies policies increase the welfare of the whole society.
Multinational Enterprise Foreign Direct Investment (FDI) Nash Equilibrium Entry Mode Dynamic Game
DAI Xiaojun
PH.D,School of Earth Science,China University of Geosciences (Beijing),P.R.China,100083
国际会议
2007 International Conference on Management Science and Engineering(2007管理科学与工程国际学术会议)
河南焦作
英文
2137-2144
2007-08-20（万方平台首次上网日期，不代表论文的发表时间）