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Why do companies relocate? The German discourse on relocation

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  • Piotti, Geny
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    Abstract

    The paper examines the role of discourse in supporting firm's decisions to relocate and how main actors influence such discourse. If there is uncertainty about the general functioning of the economy, discourse is the place where ideas and paradigms, and possible options of behavior, are created. Since interests are not given a priori but are socially constructed, discourse contributes to their definition by selecting, amplifying and legitimizing arguments and causal relationships between the functioning of the market and individual behavior. Some surveys of German companies show that while relocation is increasing, the advantages for firms are less clear than expected. The main argument of the paper is that the public debate in German newspapers and the business press since the 1990s could have influenced the processes of decision-making over relocation by amplifying the disadvantages of remaining in Germany and neglecting the conflicts and additional costs arising for companies by relocating their production activities. --

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    Bibliographic Info

    Paper provided by Max Planck Institute for the Study of Societies in its series MPIfG Discussion Paper with number 07/14.

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    Date of creation: 2007
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    Handle: RePEc:zbw:mpifgd:0714

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    1. Faini, Riccardo, 2004. "Trade Liberalization in a Globalizing World," CEPR Discussion Papers 4665, C.E.P.R. Discussion Papers.
    2. Dosi, G & Egidi, M, 1991. "Substantive and Procedural Uncertainty: An Exploration of Economic Behaviours in Changing Environments," Journal of Evolutionary Economics, Springer, vol. 1(2), pages 145-68, April.
    3. David Dequech, 2000. "Fundamental Uncertainty and Ambiguity," Eastern Economic Journal, Eastern Economic Association, vol. 26(1), pages 41-60, Winter.
    4. Hans-Werner Sinn, 2005. "Basar-Ökonomie Deutschland - Exportweltmeister oder Schusslicht?," Ifo Schnelldienst, Ifo Institute for Economic Research at the University of Munich, vol. 58(06), pages 03-42, 03.
    5. Herbert Simon & Lindsay McSweeney, 2010. "A Behavioral Model of Rational Choice," CPI Journal, Competition Policy International, vol. 6.
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