Equilibrium Analysis of Optimal Market Entry Mode for MNCs

摘要：

Different host markets attract multinational corporations (MNCs) in different ways. This paper parameterizes the costs of three foreign market entry modes, and builds a dynamic economic model to analyze to get the optimal entry mode. The result shows that: the determinants of the optimal entry mode of the MNCs include not only the trade cost, greenfield investment cost, and cross-border M&A cost, but also the market capacity of the host country. With larger market capacity, greenfield investment is more advantaged, while with extremely small market capacity, international trade is most advantaged. Cross-border M&A are not monotonously correlated with the market capacity. These theoretical conclusions were empirically confirmed in many industries of China.

关键词： multinational corporations (MNCs) market entry market capacity

作者: ZHENG Yingfei

作者单位: Finance & Management School,Shanghai Institute of Foreign Trade,Shanghai,China,201620

会议类型: 国际会议

会议名称: 2010 International Conference on Technology Innovation and Industry Development(2010年技术创新与产业发展国际研讨会)

会议地点: 烟台

会议语种:英文

页码: 552-557

在线出版日期: 2010-09-17（万方平台首次上网日期，不代表论文的发表时间）