Knowledge that Transforms

The subject of foreign investments in U.S. remains of high interest from both an academic and real world prospective. Since the 1970's, the flow of foreign investments has accelerated, and particularly since 1975.

The sourcing policy of a multinational enterprise is the result of the firm's decisions as to which of its production facilities shall service its various final markets. We can thus speak of an international network linking production to markets. Critical determinants of this policy are the firm's size, industry characteristics, and influences deriving from the firm's natioanality of ownership. We suggest that the research intensity is an important influence on sourcing policy, particularly through its effect on the firm's internal exports.

The salient attributes of direct and indirect exporting methods of distribution were identified. Attitudes of three groups of executives (executives using direct exporting methods, executives using indirect exporting methods, and nonexporting executives) were assessed towards the attributes. Attitudes were analyzed using ANOVA. The findings suggest that the three groups of executives hold significantly different attitudes about the attributes. The findings (1) imply that executives using indirect exporting methods and nonexporitng executives are most alike in their attitudes; (2) offer an explaination for the tendency of executives to begin exporting with indirect methods and to switch to direct methods as exporting experience increases, and (3) identify the attitudes that each group of executives is most likely to hold.

This study reports the findings of a research project which focused on the stereotypes that United States purchasing managers have about industrial products manufactured in England, France, Italy, and West Germany, as well as the United States. The objective of the research was to determine what stereotypes, if any, exist in the minds of industrial buyers as they consider industrial products from these Western European nations. The findings suggest that stereotypes do exist for industrial products being traded by these nations. Managerial implications for marketing managers are discussed.