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Incertitude sur le change et multinationalisation en concurrence imparfaite

Author

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  • Larbi Dohni

Abstract

This paper shows how, in a duopoly framework, uncertainty may provide an incentive for multinational production. Given its sequential nature, foreign direct investment can play a strategic role because, by establishing plants in more than one country, it enables the firm to relocate production once these costs are known. Owing to the asymmetry between a multinational enterprise and a single nation firm, production flexibility affects the outcomes of the competition between these firms. Classification JEL : F23, L13

Suggested Citation

  • Larbi Dohni, 2001. "Incertitude sur le change et multinationalisation en concurrence imparfaite," Revue économique, Presses de Sciences-Po, vol. 52(4), pages 791-810.
    • Handle: RePEc:cai:recosp:reco_524_0791
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    JEL classification:

    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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