Despite an extensive literature on the determinants of the foreign location choices by multinational companies, researchers have only recently begun to systematically examine how these companies form their location consideration sets. When considering new foreign locations, do firms evaluate the attributes of the alternatives at the national level, the sub-national regional level, at some other level of geographical aggregation, or using some combination of these? This study employs discrete choice models to examine how U.S. multinational companies form their location consideration sets and to identify some of the relevant location attributes. The data set covers new manufacturing investments by U.S. companies in selected countries in Europe and Asia-Pacific over the period 1989-2003. The results indicate that U.S. firms tend to employ a sequential, or hierarchical, choice process in which a host country is first chosen based on one set of attributes and then a region within that country is chosen based on another set of attributes. Location attributes related to industrial agglomeration (such as the proximity to customers, suppliers, workers with the necessary skills, and transportation infrastructure) appear to dominate location attributes related to factor prices (such as the availability of cheap land and low-wage labor).
|Advisor:||Reynolds, Kara M.|
|School Location:||United States -- District of Columbia|
|Source:||DAI-A 68/09, Dissertation Abstracts International|
|Subjects:||Economics, Business costs|
|Keywords:||Asia-Pacific, Europe, Industrial location, Manufacturing, Multinationals, Sequential choice|
Copyright in each Dissertation and Thesis is retained by the author. All Rights Reserved
The supplemental file or files you are about to download were provided to ProQuest by the author as part of a
dissertation or thesis. The supplemental files are provided "AS IS" without warranty. ProQuest is not responsible for the
content, format or impact on the supplemental file(s) on our system. in some cases, the file type may be unknown or
may be a .exe file. We recommend caution as you open such files.
Copyright of the original materials contained in the supplemental file is retained by the author and your access to the
supplemental files is subject to the ProQuest Terms and Conditions of use.
Depending on the size of the file(s) you are downloading, the system may take some time to download them. Please be