Konrad, Kai A.; Lommerud, Kjell Erik
Foreign direct investment, intra-firm trade and ownership structure.
Papers / Department of Economics, University of Bergen
Volltext auf 'Open Access LMU' nicht verfügbar.
Asymmetric information about true opportunity cost in trade between a multinational and its foreign affiliate can alleviate the hold-up problem in foreign direct investment. Selling shares in the affiliate to locals is also beneficial because it increase the parent multinational's information rent that is protected from a host government's confiscatory taxation.