The structure of location choice for new U.S. manufacturing investments in Asia-Pacific

Mataloni, Raymond J.
April 2011
Journal of World Business;Apr2011, Vol. 46 Issue 2, p154
Academic Journal
Abstract: Despite an extensive literature on the determinants of the foreign location choices by multinational firms, researchers have only recently begun to systematically examine how these firms form their location consideration sets. When considering new foreign locations, do firms evaluate the attributes of the alternatives at the national level, the sub-national regional level, at some other level of geographical aggregation, or using some combination of these? This paper employs discrete choice models to examine how U.S. multinational firms form their consideration sets over locations in the Asia-Pacific area and to identify some of the relevant location attributes. The results are consistent with a sequential, or hierarchical, decision-making process in which firms first select a host country based on one set of attributes and then select a region within that country is selected based on another set of attributes. Most of the location attributes that are found to be significant are related to productivity-enhancing features, such as worker skills, industrial agglomeration, and extensive transportation infrastructure, rather than features related to factor prices, such as low-wage labor.


Related Articles

  • The dynamic relation between financial positions and investment: evidence from company account data. Stanca, L; Gallegati, M // Industrial & Corporate Change;Sep99, Vol. 8 Issue 3, p551 

    Investigates the dynamic interaction between financial conditions and investment by using company account data from manufacturing firms based in the United States. Financial business cycle theories concerning time and sectional heterogeneity; Role of financial factors in aggregate fluctuations;...

  • Wealth Effects of US Acquisitions in the Pacific Rim. Gleason, Kimberly C.; Gregory, Deborah W.; Wiggins, Roy A. // Journal of Business & Economic Studies;Fall2002, Vol. 8 Issue 2, p28 

    Investigates the effect of direct foreign investment in the Pacific Rim region on U.S. multinational corporations undertaking the acquisitions. Background on acquisition activity in the U.S.; Strategic advantages of the international production theory of Dunning; Differences observed between...

  • The International R&D Location Choices of US Multinationals. Feinberg, Susan // Academy of Management Proceedings & Membership Directory;2000, pD1 

    This research examines the international research and development (R&D) location choices of US multinationals (MNCs) from 1989-1996. Although national governments offer R&D subsidies and tax breaks to MNCs designed to lure domestic technology-based jobs, we have no empirical evidence on the...

  • SOME ASPECTS REGARDING MULTINATIONAL ENTERPRISE. Daniela, Popa // Annals of the University of Oradea, Economic Science Series;2008, Vol. 17 Issue 3, p456 

    Firms engaged in international trade, but they produced their output only at home. In this paper, we turn attention to the phenomenon of the international company, which Romania had not enough. Traditional trade theory offers few reasons why companies should become international and conduct...

  • DOWNSIDE RISK IMPLICATIONS OF MULTINATIONALITY AND INTERNATIONAL JOINT VENTURES. Reuer, Jeffrey J.; Leiblein, Michael J. // Academy of Management Journal;Apr2000, Vol. 43 Issue 2, p203 

    Investments in dispersed foreign subsidiaries and international joint ventures (IJVs) are often thought to enhance corporate flexibility and thereby reduce risk. The authors tested these predictions from real options theory and the international strategy literature using a set of recently...

  • Firm Heterogeneity and Location Decision of Chinese Outward FDI. Huihuang Liu; Huimin Xiao // International Journal of Advancements in Computing Technology;Feb2013, Vol. 5 Issue 3, p822 

    This paper examines how Chinese multinational firms with heterogeneous characteristics self-select into different host countries. Firm-level estimates suggest that TFP is not a key factor in investment behavior, while firms with different investment motives have different range of investment. We...

  • Believe it or not. Grasson, Tom // American Machinist;Apr2003, Vol. 147 Issue 4, p8 

    Editorial. Discusses the significance of basing decisions on personal experience and intuition to the success of a business. Effect of the involvement of the U.S. in international conflict on the views of U.S. manufacturers on economic potential; Differences in the findings of surveys...

  • National Culture and Innovation: Implications for Locating Global R&D Operations. Jones, Gary K.; Davis, Herbert J. // Management International Review (MIR);2000 1st Quarter, Vol. 40 Issue 1, p11 

    As multinational corporations internationalize their R&D function, location decisions become vital to the success of the firm. One input to the location decision process that has received little attention is the impact of national culture on R&D operations. The current paper reviews the...

  • Decision Traps. Deligonul, Seyda // Quality Progress;Jan2000, Vol. 33 Issue 1, p54 

    Discusses auditing of decision making in manufacturing operations in the United States. Rules of thumb to reduce the demands of decision making; Management cliche's about manufacturing operations.


Read the Article


Sorry, but this item is not currently available from your library.

Try another library?
Sign out of this library

Other Topics