✦ LIBER ✦

Locational determinants of the US direct foreign investment in food and kindred products

✍ Scribed by Yulin Ning; Dr. Michael R. Reed

Publisher: John Wiley and Sons
Year: 1995
Tongue: English
Weight: 643 KB
Volume: 11
Category: Article
ISSN: 0742-4477
DOI: 10.1002/1520-6297(199501/02)11:1<77::aid-agr2720110108>3.0.co;2-0

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✦ Synopsis

This article investigates locational determinants of US direct foreign investment (DFI) in food and kindred products by using data from six industrialized countries fiom I983 to 1989. Separate equations were fitted to explain DFI position, outjlow, and reinvestment. Cultural linkages, trading blocs, host market size, tax considerations, exchange differentials, and host market growth rates are found to be signijicant determinants of DFI in food manufacturing. Wage rate diflerentials were found to be important in the position and reinvested equations, but not in the outjlow equation. Thus, cheap labor may not be as important in attracting DFI as in the past. 01995 by John Wiley & sons, 1n.C. Dramatic changes have been observed in the United States and the world food industries in the last decade; going global has become quite a phenomena. Although different strategies have been used by many US food firms, direct foreign invest-........

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