Gains from multinational competition for cross-border firm acquisition (2019)

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Type of Content
Journal ArticlePublisher
ZBW - German National Library of EconomicsISSN
1864-60421864-6042
Language
EnglishCollections
Abstract
© Author(s) 2019. This study shows that when there is multinational competition for foreign acquisition, the strategic use of a consumer welfare argument in regulating foreign market entry leads to a preemptive foreign acquisition. Even under fierce competition, foreign acquisition will emerge as part of a non-cooperative equilibrium (although multinationals would have gained more had they been able to credibly commit to a cooperative equilibrium of independent foreign sales, either via greenfield investment or trade under complete liberalization) which increases local welfare by more than both the case without foreign market entry and the case with foreign market entry via independent foreign sales.
Citation
Koska OA (2019). Gains from multinational competition for cross-border firm acquisition. Economics. 13.This citation is automatically generated and may be unreliable. Use as a guide only.
Keywords
Cross-border firm acquisitions; foreign market entry regulations; greenfield investment; trade; consumer welfareANZSRC Fields of Research
38 - Economics::3801 - Applied economics::380107 - Financial economics14 - Economics::1402 - Applied Economics::140210 - International Economics and International Finance
35 - Commerce, management, tourism and services::3502 - Banking, finance and investment::350208 - Investment and risk management
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Creative Commons Attribution LicenseRelated items
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