• International Commerce and Information Review
• /
• v.11 no.1
• /
• pp.485-515
• /
• 2009

In this study aims to research and analyze what are decision factors between a wholly-owned subsidiary and a international company cooperation in the internationalization process. From 57 primary studies found 26 observed variables for aggregation of effect size in the using "Fixed Effect Model" on this mata-analysis. The article also links the theories that are used in the literature, not considered in the most of primary studies, to the empirical results and recommends global management strategy which is needed for business practical affairs. According to the result, the meta-analysis suggests that the number of employees of a MNC, the geological and cultural differneces between the host country and home country, the country-specific international experience of the MNC and export intensity, the international product diversification, the market growth and the market size of the foreign operations, and resource intensity of the foreign operations, the legal restrictions in the host country and the country risk of the home country do exert a significant effect on the decision between cooperative arrangement and a wholly-owned subsidiary. Conversely, for a large number of variables, no significant relationship seems to exist based on the combined results. This is the case, for example, for factor specificity, the r&d-intensity, the subsidiary size, the assets of the MNC and the sales volume of the MNC.

• Journal of Global Scholars of Marketing Science
• /
• v.19 no.2
• /
• pp.5-16
• /
• 2009

Against the backdrop of the increasing trend towards economic globalisation, many international firms are indicating that decisions on how to enter foreign markets remains one of the key strategic challenges confronting them. Despite the rich body of literature on the topic, the fact that these challenges have continued to dominate global marketing strategy discourses point to someevident lacunae. Accordingly, this paper considers the variables, categorised in terms of firm contexts (standardisation, market research, competition, structure, competitive advantage) and host country-contexts (economic development, cultural differences, regulation and political risk), which influence the degree of involvement of UK companies in overseas markets. Following hypotheses were drawn from literature review: H1: The greater the level of competition, the higher the degree of involvement in the overseas market. H2: The more centralised the firm's organisation structure, the higher the degree of involvement in the overseas market. H3a: The adoption of a low cost-approach to competitive advantage will lead to a higher degree of involvement. H3b: The adoption of an innovation-approach to competitive advantage will lead to a higher degree of involvement. H3c: The adoption of a market research approach to competitive advantages will lead to a higher degree of involvement. H3d: The adoption of a breadth of strategic target-approach to competitive advantage will lead to a lower degree of involvement. H4: The higher the degree of standardisation of the international marketing mix the higher the degree of involvement. H5: The greater the degree of economic development in the host market, the higher the degree of involvement. H6: The greater the cultural differences between home and host countries, the lower the degree of involvement. H7: The greater the difference in regulations between the home country and the host country, the lower the degree of involvement. H8: The higher the political risk in the host country, the lower the degree of involvement. A questionnaire instrument was constructed using, wherever possible, validated measures of the concepts to serve the aims of this study. Following two sets of mailings, 112 usable completed questionnaires were returned. Correlation analysis and multiple regression analysis were used to analyze data. Statistically, the paper suggests that factors relating to the level of competition, competitive advantages and economic development are strong in influencing foreign market involvements. On the other hand, unexpectedly, cultural factors (especially individualism/collectivism and low and high power distance dimensions) proved to have weak moderating effects. The reason for this, in part, is due to the pervading forces of globalisation and the attendant effect on global marketing. This paper has contributed to the general literature in a way that point to two mainimplications. First, with respect to research on national systems, the study may hold out some important lessons especially for developing nations. Most of these nations are known to be actively seeking to understand what it takes to attract foreign direct investment, expand domestic market and move their economies from the margin to the mainstream global economy. Second, it should be realised that competitive conditions remain in constant flux (even in mature industries and mature economies). This implies that a range of home country factors may be as important as host country factors in explaining firms' strategic moves and the degree of foreign market involvement. Further research can consider the impact of the home country environment on foreign market involvement decisions. Such an investigation will potentially provide further perspectives not only on the influence of national origin but also how home country effects are confounded with industry effects.

• Korea Trade Review
• /
• v.44 no.6
• /
• pp.345-361
• /
• 2019

In recent years, Chinese firms have explosively increased outward foreign direct investment (oFDI). While state-owned enterprises (SOEs) are still dominant in Chinese oFDI, privately-owned enterprises (POEs) are also accelerating their internationalization. These two types of Chinese firms differ in their behavior regarding oFDI. The objective of this paper is to analyze the differences in the choice of oFDI locations between Chinese SOEs and POEs by considering host country factors. By integrating the literature on Chinese firms' oFDI and on FDI locations, we developed six hypotheses concerning how host country factors affect their choice of location. We tested our hypotheses by conducting multiple regression analysis with recent secondary data on 413 Chinese MNEs in 88 countries between 2005 and 2016. The results of the test show that in selecting oFDI locations, Chinese SOEs invest relatively more in countries with richer natural resources, more abundant strategic assets, less production efficiency, higher political risk, and lower institutional quality compared with Chinese POEs. It is our hope that the empirical results of this paper will contribute to research on Chinese oFDI.

• The Journal of Asian Finance, Economics and Business
• /
• v.8 no.3
• /
• pp.267-275
• /
• 2021

This study investigates the relationship between cultural distance and entry mode choice, where the foreign investor firm and the host country are both from emergent economies. Within this framework, research is limited and the issue is whether companies, regardless of their specific situations, have the same strategy when they meet a high degree of uncertainty in the host environment. In this study, we focused on the influence of informal institutional factors: cultural distance, that has been extensively analyzed in international business, measured by Kogut and Singh index and defined according to Hofstede, Globe Project and Schwartz approaches. The general trend derived from prior research proves that when a company from a developed country is involved; overall more enthusiasm is shown for wholly-owned subsidiaries rather than joint venture. This result still stands validated for corporations from this emergent economy area. Our analysis of a sample of 163 FDI in the Kingdom of Saudi Arabia (KSA) using logistic binary regression model reveals that the foreign firms prefer to establish wholly-owned subsidiaries in the host country over entering into a joint venture with a local firm, taking into consideration the large cultural distance.

• Korea Trade Review
• /
• v.47 no.4
• /
• pp.89-102
• /
• 2022

This study is designed to investigate the effect of inflow FDI on the host country's economic growth and the role of absorptive capacity in this relationship. Eight developing countries in East Asia, including Mongolia, Indonesia, Malaysia, Myanmar, the Philippines, Thailand, Vietnam, and Cambodia, are analyzed. Year data from 2000 to 2018 are used. Based on the study of Hansen (1999), the panel threshold effect model is used, and human capital, R&D, and infrastructure are set as absorptive capacity by referring to Wang and Hwang (2013). The analysis results are as follows. It is confirmed that FDI has a positive effect on the economic growth of the host country, and absorption capacity strengthens the relationship between FDI and economic growth in a positive direction. At this time, it appears that a threshold exists for the moderating effect of the absorptive capacity. It presents useful implications for economic growth in developing countries.

• Korea Trade Review
• /
• v.46 no.2
• /
• pp.39-54
• /
• 2021

The purpose of this study is as follows. First we investigate the relationship between contact with foreign managers (CFM) of host country nationals (HCNs) working at MNC subsidiaries and their organizational identification with MNC (OIM). Second we examine the moderating effect of MNC subsidiary localization (MSL) on the relationship between CFM and OIM. For this purpose, we set hypotheses on the relationship among CFM, OIM, and MSL. To verify theses hypotheses, we conducted hierarchical regression analysis on the data from 374 HCNs in 56 MNC subsidiaries. The results of this study are as follows: Frist, CFM positively affects OIM. Second, there is a significant moderating effect of MSL on the relationship between CFM and OIM. Our findings have critical implications in that a subsidiary-level variable that has a significant impact on organizational identification with MNC is presented and in that specific managerial guidelines for subsidiaries can be drawn.

• Korea Trade Review
• /
• v.44 no.3
• /
• pp.271-287
• /
• 2019

This paper reviews and analyzes the ethical issues of multinational corporations (MNCs) in Africa. First, we find that the transparency and institutions of a host country have a negative relationship with the number of ethical violations of the MNCs. Second, this covers the effects of industry characteristics on each category of ethical issues such as the human rights and the environment. Based on the database of "Ethical Consumer", we show that the Auto, Chemical, Finance, and Telecommunication industries are more likely to violate human rights issues, and that Mining, Oil, Cosmetics, and Chemical industries are more likely to pollute the environments. Further, the country of origin does matter: the US and Asian companies are more likely to be involved with the business ethics violations than are their European counterparts.

• Journal of Arbitration Studies
• /
• v.27 no.2
• /
• pp.3-18
• /
• 2017

International legal reviews on ISD, a procedure for resolving disputes under the Korea-US FTA, are examined from the perspective of law. If the ISD system does not exist, even if the investor suffers damage due to the illegal act of the host country, he or she must file a lawsuit through the court of the host country, which is unreasonable from the investor's point of view and makes it difficult to guarantee fairness and transparency. Some of the Koreans pointed out that there are some problems with the KORUS FTA dispute settlement regulations, and that the United States federal courts are taking a friendly attitude to the decisions made by the US Customs in determining the dispute by the KORUS FTA Agreement and the US Customs Act. In cases where the State does not violate international law but results in harmful consequences, the responsibility of one country is borne by the treaty. Foreign investment always comes with many challenges and risks. Therefore, the ISD system is a fair and universal arbitration system, which is considered to be a necessary system even for protecting the Korean companies investing abroad. In the investment treaty, compensation for the nationalization of foreign property and reimbursement under the laws of the host country were dissatisfied with foreign investors. In particular, some Koreans have pointed out that there are some problems in the KORUS FTA dispute resolution regulations and there is a need for further discussion and research. Based on the experiences and wisdoms gained in the course of Korea-US FTA negotiations, the dispute arbitration mechanism is urgently needed to reduce the possibility of disputes and to make amicable directions.

• Korean Journal of Agricultural Science
• /
• v.47 no.3
• /
• pp.425-435
• /
• 2020

Official development assistance (ODA) projects are conducted under the auspices of donor countries and on the principle of time-limited implementation for economic development and welfare improvement in a host country. Exit strategies on how to end official assistance are therefore crucial. Sudden economic recession in a donor country could lead to the suspension of ODA projects, which would affect diplomatic relations and project outcomes. Further, exit strategies can help continue the original project and create links with other ODA projects. This study shows how to employ exit strategies in the Korea-Mongolia Greenbelt Plantation Project and has implications for sustainability of development assistance. Exist strategies were not taken into consideration initially. In the course of implementation and management transfer upon the completion of plantation, various facets were considered later on in developing exit strategies. An ideal exit strategy is to reach the extent to which a host country no longer needs official assistance or has capacity of project implementation on its own. A year-by-year transfer of planted areas can be a phase-over strategy. The Korea Forest Service fulfilled transparent cooperation with Mongolian local governments, established appropriate arrangements with stakeholders, secured institutional and financial foundation for follow-up management by a host country, and realized predictability, responsibility, and sustainability. As a local institution, the plantation technology management center has been established for follow-up activities such as the introduction of agro-forestry. When the Korea Forest Service designed an urban forest project as an exit strategy, sustainability was ensured, which has implications in implementing other ODA projects.

• Korean Journal of Microbiology
• /
• v.7 no.1
• /
• pp.22-28
• /
• 1969

Twenty-nine specimens of the infected plans were collected from areas through the country since 1967 to 1968. We report here four unrecorded causla organisms of powdery and their hosts which were identified in this work. The results as as follows : 1. Microsphaera diffusa Cooke et Peck (M.magnoliae Sawoda) (Host:Magnolia obovata Thunb.) 2. Sphaerotheca humili (de Condolle0Burill. (Host: Spirea sp.) 3. Phyllactinea fraxini (de Condolle)Homma. (Host : Betuls sp.) 4. Uncinula sengorui.Salmon.(Host : Celastrus orbiculatus, Thunb.) * Six unrecorded host 1. Altemisia japonica. Thunb. (Pathogen : Erysiohe cichoracearum DC.) 2. Aster tataricus. L. (Pathogen :Sohaerotheca fuliginea (Schlechtendahl) Poll. 3. Dohlia variabilis Defont. (Pathogen :Sphaerotheeca fuliginea (schlechtendahl) poll. 5. Helianthus ammues (Pathogen :Spherotheca fuliginea schlechtendahl) poll. 6. Solanum melangera L. (Pathogen : Erysiphe cichoracearum DC.)