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From access to acceptance: The costs of crossing borders in the global economy

Author

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  • Sarianna M. Lundan

    () (University of Bremen - International Management and Governance & ZenTra)

Abstract

This paper provides an overview of the different kinds of distance-related barriers related to crossborder investment. Expanding the economic footprint of the firm comes at the cost of a corresponding increase in the complexity of coordination. Different forms of governance, whether inside the firm or as part of its network of external relationships, have the aim of reducing uncertainty and creating a more predictable environment. The impact of conventional distancerelated barriers, as well as the more difficult institutional barriers reflecting differences in norms and beliefs, on the costs and methods of coordination adopted by multinational firms are explored.

Suggested Citation

  • Sarianna M. Lundan, 2014. "From access to acceptance: The costs of crossing borders in the global economy," ZenTra Working Papers in Transnational Studies 34 / 2014, ZenTra - Center for Transnational Studies, revised Jun 2014.
  • Handle: RePEc:zen:wpaper:34
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    File URL: http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2454524
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    More about this item

    Keywords

    transnational firms; foreign investment; governance; entry barriers; institutional distance;

    JEL classification:

    • 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; Personnel Economics - - Business Administration - - - International Business Administration

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