Abstract
The paper presents statistical evidence supporting the proposition that the kind of monopolistic advantage possessed by the firm is decisive as to which form of involvement it will choose to penetrate into foreign markets: exporting versus producing abroad. A decomposition of export flows into exports to affiliates (intra-company trade) and exports to unaffiliated buyers proves to be a crucial element in the empirical test of this proposition.
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*The author is Senior Research Associate within INCAP (Industry and Company Analysis Program) at the University of Louvain, Belgium. He received his Ph.D. from the same university in 1984. His research and publications focus on the interactions of the theory of the multinational enterprise with the new industrial organization theory.
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Sleuwaegen, L. Monopolistic Advantages and the International Operations of Firms: Disaggregated Evidence from U.S.-Based Multinationals. J Int Bus Stud 16, 125–133 (1985). https://doi.org/10.1057/palgrave.jibs.8490463
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DOI: https://doi.org/10.1057/palgrave.jibs.8490463