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Distance-related Barriers and the Internationalisation of Finnish MNEs

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Author Info
Sarianna M. Lundan
Abstract

ABSTRACT : In an integrated global economy, multinational enterprises (MNEs) have more opportunities than ever to reap the benefits of broader markets and more possibilities for an extensive division of labour between different locations. In spite of this, the evidence on the spread of the activities of MNEs seems to indicate a strong regional tendency, at least for the largest MNEs. This paper examines the theoretical arguments for the existence of such boundaries in an integrated global economy, and then examines their empirical importance using recent evidence on the internationalisation patterns of Finnish MNEs. We find that while some of the largest MNEs do indeed appear to be quite regional, some of the smaller internationalising firms are notably more global in terms of the spread of their activities.

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Paper provided by The Research Institute of the Finnish Economy in its series Discussion Papers with number 1193.

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Length: 30 pages
Date of creation: 07 Sep 2009
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Handle: RePEc:rif:dpaper:1193

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Related research
Keywords: multinational enterprises; internationalisation; entropy; cultural distance; institutional distance;

Find related papers by JEL classification:
D21 - Microeconomics - - Production and Organizations - - - Firm Behavior
D24 - Microeconomics - - Production and Organizations - - - Production; Capital and Total Factor Productivity; Capacity
F21 - International Economics - - International Factor Movements and International Business - - - International Investment; Long-Term Capital Movements
F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
M16 - Business Administration and Business Economics; Marketing; Accounting - - Business Administration - - - International Business Administration

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This page was last updated on 2009-11-24.

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