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Determinants of Foreign Investment of U.S. Advertising Agencies


  • Vern Terpstra

    (University of Michigan)

  • Chwo-Ming Yu

    (University of Illinois at Urbana-Champaign)


This paper investigates the impact of several factors on the foreign investment of U.S. advertising agencies by using the theories on the determinants of foreign direct investment by manufacturing firms. For the two years examined, the hypotheses about the impact of host country market size, host country geographic proximity, firm size, firm's international operations experience, oligopolistic reaction, and presence of home country customers abroad are all confirmed. This paper also investigates the impact of oligopolistic reaction among the top ten and the second ten largest agencies and finds a stronger impact for the former.© 1988 JIBS. Journal of International Business Studies (1988) 19, 33–46

Suggested Citation

  • Vern Terpstra & Chwo-Ming Yu, 1988. "Determinants of Foreign Investment of U.S. Advertising Agencies," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(1), pages 33-46, March.
  • Handle: RePEc:pal:jintbs:v:19:y:1988:i:1:p:33-46

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