The Review of Economics and Statistics Vol. 64 No. 2 1982
Market Power and Foreign Involvement by U.S. Multinationals
Abstract
This study considers the relationship between market power and multinational involvement through use of a market-valuation approach. Estimation results for a sample of large US multinationals reveal superior valuation effects due to returns from foreign as opposed to domestic operations. This finding is consistent with the hypothesis that returns from the US market tend to be less secure, and therefore less valued, than are returns from foreign markets due to both real (market size, entry barriers, etc.) and institutional (antitrust policies, etc.) differences in competitive environments. Such findings are also consistent with previous suggestions that firms develop markets abroad in order to exploit economic-rent opportunities. These findings remain tentative, however, and await verification in future studies of data from both the United States and abroad. 13 references, 1 table.
- DOI
- 10.2307/1924317
- Volume
- 64
- Issue
- 2
- Pages
- 343
- Sources
- openalex crossref