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

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    Economics_2019-20.pdf (246.1Kb)
    Type of Content
    Journal Article
    UC Permalink
    http://hdl.handle.net/10092/17762
    
    Publisher's DOI/URI
    https://doi.org/10.5018/economics-ejournal.ja.2019-20
    
    Publisher
    ZBW - German National Library of Economics
    ISSN
    1864-6042
    1864-6042
    Language
    English
    Collections
    • Business: Journal Articles [255]
    Authors
    Koska OA
    show all
    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 welfare
    ANZSRC Fields of Research
    38 - Economics::3801 - Applied economics::380107 - Financial economics
    14 - 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
    Rights
    Creative Commons Attribution License

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