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Oligopolistic Reaction and Foreign Direct Investment: The Case of the U.S. Tire and Textiles Industries

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  • Chwo-Ming J Yu

    (University of Illinois)

  • Kiyohiko Ito

    (University of Michigan)

Abstract

This paper empirically tests the impact of oligopolistic reaction and some firm–related and host country–related factors on FDI activities in the U.S. tire and textile industries. The results reveal that in an oligopolistic industry, firms' motivation of FDI is based on the behavior of rivals as well as host country–related and firm–related factors, while in a more competitively structured industry, firms do not actively counter the competitors' FDI activities.© 1988 JIBS. Journal of International Business Studies (1988) 19, 449–460

Suggested Citation

  • Chwo-Ming J Yu & Kiyohiko Ito, 1988. "Oligopolistic Reaction and Foreign Direct Investment: The Case of the U.S. Tire and Textiles Industries," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 19(3), pages 449-460, September.
  • Handle: RePEc:pal:jintbs:v:19:y:1988:i:3:p:449-460
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