From Access to Acceptance: The Costs of Crossing Borders in the Global Economy

19 Pages Posted: 17 Jun 2014

Date Written: June 17, 2014

Abstract

This paper provides an overview of the different kinds of distance-related barriers related to crossborder investment. Expanding the economic footprint of the firm comes at the cost of a corresponding increase in the complexity of coordination. Different forms of governance, whether inside the firm or as part of its network of external relationships, have the aim of reducing uncertainty and creating a more predictable environment. The impact of conventional distancerelated barriers, as well as the more difficult institutional barriers reflecting differences in norms and beliefs, on the costs and methods of coordination adopted by multinational firms are explored.

Keywords: transnational firms, foreign investment, governance, entry barriers, institutional distance

JEL Classification: F21, F23, M16

Suggested Citation

Lundan, Sarianna M., From Access to Acceptance: The Costs of Crossing Borders in the Global Economy (June 17, 2014). ZenTra Working Paper in Transnational Studies No. 34 / 2014, Available at SSRN: https://ssrn.com/abstract=2454524 or http://dx.doi.org/10.2139/ssrn.2454524

Sarianna M. Lundan (Contact Author)

University of Bremen ( email )

FB 7
Hochschulring 4
Bremen, D-28359
Germany

HOME PAGE: http://www.img.uni-bremen.de

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