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A Note on the Choice between Licensing and Direct Foreign Investment

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  • Rolf Mirus

    (University of Alberta)

Abstract

This note shows that the explanation of Direct Foreign Investment based on the existence of a currency premium implies a bias in the home capital market of the multinational firm. An alternative and complementary explanation of the choice between Licensing and Direct Foreign Investment may be found in “disagreements” in the negotiations for a license.© 1980 JIBS. Journal of International Business Studies (1980) 11, 86–90

Suggested Citation

  • Rolf Mirus, 1980. "A Note on the Choice between Licensing and Direct Foreign Investment," Journal of International Business Studies, Palgrave Macmillan;Academy of International Business, vol. 11(1), pages 86-90, March.
    • Handle: RePEc:pal:jintbs:v:11:y:1980:i:1:p:86-90
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    Cited by:

    1. Yoong-Deok Jeon, 1992. "The determinants of Korean foreign direct investment in manufacturing industries," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 128(3), pages 527-542, September.
    2. Ulrich Lichtenthaler & Eckhard Lichtenthaler, 2009. "A Capability‐Based Framework for Open Innovation: Complementing Absorptive Capacity," Journal of Management Studies, Wiley Blackwell, vol. 46(8), pages 1315-1338, December.
    3. Lichtenthaler, Ulrich, 2009. "Product business, foreign direct investment, and licensing: Examining their relationships in international technology exploitation," Journal of World Business, Elsevier, vol. 44(4), pages 407-420, October.

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