1. Strategic direct investment under unionized oligopoly
- Author
-
Bughin, Jacques and Vannini, Stefano
- Subjects
International business enterprises -- Investments ,Foreign investments -- Research ,Labor unions -- Economic aspects ,Oligopolies -- Research ,Business ,Business, international - Abstract
The effect of the degree of unionization in an oligopolistic economy on the investment decisions of multinational companies is analyzed. The hypothetical economy under study is one where an equilibrium situation characterized by unemployment exists. Findings show that unions generally prefer that foreign investors participate solely in developing export markets for the host country. Additionally, the existence of strong unions generally discourage foreign direct investment.
- Published
- 1995