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A wealth of research in the past decades has examined born globals or international new ventures, which are firms that from inception view the whole world as a market and as a source to access resources. Many of these firms build their competitive advantage on high-tech knowledge. However, although many studies have shown how born globals can achieve success if they access resources through their relationships from actors in their networks, few studies have explored the relationship between born globals and universities. Universities are important actors in creating new technology knowledge, and many studies have shown how new firms, or so-called university spin-offs (USOs), are formed around universities. The current study explores why some USOs are successful in their international growth strategy and discusses the factors that influence and facilitate the internationalization process. The study investigates 10 USOs around the newly established Halmstad University in Sweden and finds that universities have a positive effect on firm creation and initial international growth. The regional competence base increases from the establishment of a local university, primarily by strengthening the regional human capital and by increasing university research. This study shows that researcher entrepreneurs’ ventures start as born globals, but that these firms do not continue to grow. Born global business models, per se, do not lead to competitive advantage and successful internationalization. Instead, a strategy built on customer focus and an ability to adapt to different customer demands lead to growth, and the location of growth is dependent on the size of the home market. This study also shows that student entrepreneurship can be a successful growth strategy for USOs focusing on both international and local markets.

We investigate liquidity, transaction costs and information content in trades of mainland Chinese stocks that are cross-listed on the Hong Kong stock market. Most majority of cross-listed Chinese stocks issue shares in the Hong Kong market and domestic shares at the same time, or even issue the former prior to the issuance of the latter. We find supportive evidence of the bonding hypothesis. Cross-listed stocks are more liquid, have lower transaction costs and less information content in trades than those non-cross-listed. These improvements remain significant after controlling for known liquidity determinants.

The development of foreign markets can be considered as a strategic key factor in times of globalisation. However, past empirical research could not detect a “universal” relationship between corporate multinationality and performance. There exist fundamental doubts whether the contextual condition of internationalisation of one empirical setting can be easily transferred to another setting for investigating the relationship between multinationality and performance. For instance, potentials for realising economies of scale in the home market and abroad, the degree of integration of neighbouring countries, as well as the accumulated internationalisation experience, can differ significantly from each other between countries. Taking into account the contextual conditions of internationalisation of stock-listed German firms in the time period from 1990 to 2006, this paper analyses the performance effects of firms’ multinationality. Firms of this sample can benefit from multinationality even in early internationalisation stages and are able to manage high degrees of complexity in later internationalisation stages successfully. Firm-specific advantages in the field of intangible assets with long-term (short-term) effects moderate the relationship between multinationality and future-oriented (past-oriented) performance positive.

We review the implications of the "core competence" model of multi-product firms, including the “market-size paradox”: for most countries, the world market is much larger than the home market, while the costs of accessing foreign markets are relatively low; hence the model predicts that most domestic firms should export more of their core products than they sell domestically; yet, in practice, we do not observe this. Extending the model to allow for investment in export market penetration resolves the puzzle, and Mexican data confirm its predictions: in particular,only the largest firms exhibit the dominance of exports over home sales.

This paper analyzes the post-IPO and long-run aftermarket performances of single-listed Chinese ADRs during the 2004–2010 period. Single-listed ADRs are traded daily in major exchanges in the United States, but their underlying shares are not traded in the issuer's home market. Our results show that over the short-run, buy-and-hold abnormal returns of single-listed Chinese ADRs following their IPO are not significantly different from the typical post-IPO performance of stocks in U.S. exchanges, including that of traditional dual-listed Chinese ADRs. Nevertheless, over the longer horizon, the excess returns of a portfolio composed solely of single-listed Chinese ADRs outperform a portfolio of dual-listed Chinese ADRs, but underperform a benchmark portfolio composed of U.S. firms matched on the basis of their IPO date. We also find that the portfolio formed solely of single-listed Chinese ADRs exhibits significantly distinct loadings on the common portfolio factors from the portfolio formed of dual-listed Chinese ADRs and from the benchmark portfolio of U.S. stocks.

The article presents chosen issues of inflow of FDI to Poland. The essence and definition of international enterprise is explained as well as the FDI number in Poland in 2014. An increase trend of FDI in Poland is presented the basis of statistical data. An influence of FDI on Polish GDP in years 2000-2013 was analysed. The directions of FDI inflow in Poland in years 2008-2013 are compared. The focus was on benefits and risks related to the presence of foreign enterprises in Poland, allowing for achievement of the objective of this study.

This paper examines the effects of the recent economic crisis, relative to the pre-crisis period, on firm acquisition behavior and how such behavior impacts short-term firm performance. We develop hypotheses on how firms adjust their geographic and product market scope in response to the economic crisis. Using data on acquisitions in Italy during the period 2007–2010, we analyze whether firms use acquisitions to enter and/or expand the firm’s presence in different product markets and different geographic markets before and during the economic crisis. Results suggest that the crisis negatively affects the likelihood of both diversifying and crossborder acquisitions, which is consistent with the behavioral theory of the firm. As a response to economic downturns, firms tend to focus on their core business as well as their home market, suggesting they are more reluctant to explore new industrial and geographical markets. We then rely on the diversification literature to link acquisitions to firm performance. We find that diversifying acquisitions have a negative effect on short-term accounting performance in crisis times. Crossborder acquisitions have a positive impact on short-term accounting performance in crisis times, although this impact tends to become weaker (though not significantly) than during non-crisis times. We lastly discuss the implications of these findings for managers and scholars.

A report from the Competition and Markets Authority on the state of the care home market has come down on the side of residents. Care homes are likely to face greater regulation, says competition lawyer Stephen Tupper

Using a sample of firms from 40 countries cross-listed in the U.S. during the 1982–2018 period, we find that the discrepancy between a firm's home industry valuation and its corresponding U.S. industry valuation—the relative industry valuation—is an important factor in the listing decision and valuation after listing. International firms whose home market industries are undervalued relative to the corresponding U.S. industries are more likely to cross-list. They also enjoy permanent valuation gains after listing. These firms issue more equity, invest more, and realize higher growth rates.

A Chinese-owned company had previously grown up and confined its business to the home market. It produced a range of chemical dyestuffs for multifarious applications and industrial uses by its customers. With the eventual decline of the Chinese economy from the historic high levels after such a fast rate of growth, the company began to consider exporting its products to neighboring countries in south-east Asia.

We study multimarket effects in a setting with home-market asymmetries. In our duopoly experiment each firm has a home market but may also enter the other firm's market. Without entry barriers, we observe a high level of mutual forbearance with firms serving home markets exclusively. With short-term entry barriers, the competition rates decrease significantly. Surprisingly, with long-term entry barriers, firms exhibit higher levels of competition, entering each other's market more often. We conjecture that in the latter case, bearing the cost of entryis perceived as a signal for intentions to compete, which has an adverse effect on cooperation.

Organic agri-food products in Spain face major commercial prob- lems in the home market as a result of consumers’lack of informa- tion about this type of product and difficulties in accessing it, and the considerable price differential between organic products and their conventional equivalents. This study proposes that consider- ation should be given to social media as a factor for mitigating these commercial problems and improving the competitiveness of organic food companies. Specifically, the aim of this research was to examine the social media penetration and activity of olive oil sector companies and ascertain whether organic and non-organic operators present differences in this respect. To this end, a checklist was used to analyse the social media activity of 663 olive oil com- panies in total, comprising both organic and non-organic pro- ducers. The results reveal statistically significant differences in social media penetration and use by organic and non-organic operators, with the former being more active in these networks. Nevertheless, the social media efforts of organic operators are less effective, owing to the limited demand for their products.

Although the American continent holds only third rank in world tourist destinations, after Europe and the Asia-Pacific region, tourism in the Americas is nevertheless an important phenomenon, with 210.9 million international arrivals for 2017, representing 16% of world tourist arrivals (UNWTO, 2018). More importantly still, a number of American countries, such as the US and Canada, boast highly developed home tourism. This home market is in fact preponderant for some of the more developed and...

The weakness of Japan’s international financial position obliged her throughout the 1950s to maintain stringent controls over foreign trade and foreign exchange transactions. Most of Japan's imports consist of raw materials and fuel which Japan wants to acquire at the lowest possible prices and she has always been ready to admit these without restrictions. The highly integrated character of much of Japan's economy may sometimes lead to discrimination against outside suppliers-including overseas suppliers-to the home market. The origin of Japan's mercantile organisation is not far to seek. The predominance of the great merchants was strengthened during the period in which Japan's foreign trade was subject to stringent and complicated controls, since firms without special experience found these perplexing. The quantitative restrictions on imports and the export subsidies have been replaced to some extent by other kinds of restrictions, or compensation provided for producers damaged by liberalisation.

This paper derives and tests the hypothesis that a country exports relatively more of those goods for which it has a relatively larger home market, i.e., a comparative home-market advantage. This prediction is based on a two-country, many-good intraindustry trade model with economies of scale, international transaction costs and differences in expenditure shares and country size. The data from 1970 to 1987 of 26 industries of the manufacturing sector in the United States and the United Kingdom supports this hypothesis. It is also shown that the relationship between home-market size and export structure becomes significantly stronger for industries with high fixed costs. JEL no. F12, F14, F17

This study draws on the resource dependence theory and institution-based view to examine political connections in the home market and home formal institutions for their impact on the internationalization of emerging market firms in the context of China. The results suggest that political connections at home may prevent emerging market firms from implementing internationalization strategies by reducing the dependence constraints imposed by local governments and foreign firms, whereas home formal institutional development may promote the strategy transition of emerging market firms from building political connections to international expansion and also reduce the negative impact of political connections. Overall, our findings indicate that political connections and formal institutions at home play an important role in shaping emerging market firms’ strategies of outward internationalization.

This article compares the daily stock market liquidity of single-listed and cross-listed American Depositary Receipts (ADRs). Single-listed ADRs trade in U.S. exchanges; however, their underlying stock is not listed in their home market. Contrary to cross-listed ADRs, if a single-listed ADR program closes, investors are left with illiquid and unlisted ordinary shares, which may affect their ADR shares’ liquidity. Using three measures of market liquidity—percentage spread, dollar volume, and price impact—we find no statistical difference between single-listed and cross-listed ADRs’ daily average liquidity, a result that holds irrespective of liquidity measure and of whether ADRs are grouped by geographical region or country. Given the high concentration of Chinese ADRs, we conducted the same analysis for these ADRs and obtained the same results.

This study investigates the relationship between home market performance and the choice of foreign market entry mode using survey data and financial statement data for German insurance groups with property–liability business from 1999 to 2011. We develop a dynamic resource-based perspective and argue that strategic transformation is a major motive driving the decisions of insurance groups to internationalize their businesses. Additionally, the more rapid the strategic transformation, the more intense is the choice of market entry mode. Furthermore, our findings corroborate the notion that internationalization has a positive effect on home market performance when insurance groups are able to decrease home market dependence by extending the degree of internationalization.

We investigate the determinants of the share of very large enterprises that a country has at the industry-level at the industry-level, using data from the Forbes Global 2000 across 48 countries and 16 industries in the period of 2004–2010. We find significant and positive evidence for three effects affecting such share: the home market effect (HME), multinational firm effect (MFE) and economic development effect (EDE). A further industry-specific analysis of the HME suggests that the industry-level degree of increasing returns to scale may only partly explain the effects being positive without them being different across industries.

Purpose – This paper aims to conduct a longitudinal analysis of the patterns of internationalisation of multinational corporations and provide a measure of their degree of globalisation at the firm-level. There is much debate in the literature on the regional nature of the globalisation of multinational corporations (Rugman and Oh, 2013). Design/methodology/approach – The authors use firm-level sales data to analyse the location of sales and patterns of globalisation of 1,276 companies across ten countries and ten industries from 1998-2012. Findings – The results show that while international sales are rising and the proportion of home region-oriented firms is falling, the majority of sales of the companies in our data set continues to be in the Triad, with little growth in non-Triad regions. The authors find one common theme for the majority of countries, an increase in sales to Asia yet concentrated in just four industries, financials, basic materials, oil and gas and technology. Despite an increase in the percentage of host-region, bi-regional and global companies, 62.6 per cent of the firms have not changed multinational classification over the 15-year period, 43.1 per cent have not expanded out of their home region and 16.4 per cent have not expanded out of their home market. The authors find some evidence of liabilities of interregional foreignness at the industry and country level. The authors show regional sales are moving towards matching global economic activity for the 50 most globalised firms in our study but less so for the other firms in our sample. Overall, the results show that the majority of the growth in internationalisation comes from a small minority of firms. Originality/value – The authors make several advances across the literature on internationalisation, including a more in-depth longitudinal analysis of firm-level multinationality than exists to date and a novel method of measuring firm-level globalisation.

The adjustment to the new competitive environment is expected to vary by the bank's status in the home market. Six hypotheses on the conduct of dominant vs. fringe banks are tested on Norwegian savings banks in 2000–2010. As expected, monopolies are the slowest to cut costs or to expand into further-away markets. Fringe banks try to defend their positions as efficient providers of standard quality, whereas dominant oligopoly banks compete head-on with both adjacent small and regional large savings banks. They adopt innovations faster and make more efforts to diversify, cut costs, and improve quality as means of competition. Copyright © 2015 John Wiley & Sons, Ltd.

We show that two major puzzles in financial economics, the home bias puzzle in international equity allocations and the choice of destination market for cross-listing, are related. In particular, the level of cross-listing activity from the home market to a foreign market is strongly positively related to the degree of over-/under-investment of the home market investors in that particular foreign market, after controlling for other potential explanations of cross-listing decisions. This finding suggests that corporate managers, when making a cross-listing decision, may be prone to the same behavioral/familiarity bias as investors, and both puzzles may in fact be the same.

Purpose – Single-listed American depositary receipts (ADRs) are traded in US markets, while their underlying share is not listed in the firm’s home market. The purpose of this paper is to empirically examine the factors affecting the returns and volatility of a sample of Chinese single-listed ADRs, in comparison with traditional Chinese ADRs. Design/methodology/approach – The methods used in this paper are similar to those used in the examination of traditional or dual-listed Chinese ADRs. However, motivated by the very nature of single-listed ADRs, the authors estimate a base model which includes factors from the two presumably most important markets for single-listed Chinese ADRs (i.e. the Chinese and US markets). In all of the estimations, the authors follow a two-step procedure. First, the authors estimate a GARCH(1,1) model with the mean equation modeled as an AR(p) process and from those models estimate GARCH (conditional) variances. Findings – In line with the evidence on traditional Chinese ADRs, the authors find that both the Chinese and the US markets are important predictors of single-listed ADR returns. The results are robust to variations in the model specifications. Originality/value – Single-listed ADR return behavior is still an under-researched topic. In this paper, the authors contribute to the literature on Chinese single-listed ADRs by empirically examining the determinants of their mean return and volatility.

In order to boost sales in foreign markets and compete with emerging local competitors, global companies from developed countries are realizing that they need to develop products specifically for the local markets. Meanwhile, companies in developing nations are building up their design staff and seeking to establish their own global brands. This recent growth in design activity targeting overseas markets suggests the need for academic research to better understand the phenomenon of design expertise transfer across national borders. The present research explores industrial designers' expertise transfer across cultures with respect to knowledge calibration. Based on the literature on expertise and Shanteau's theory of expert competence, several hypotheses are developed regarding the main effect of culture, and the interaction between culture and expertise level, on design confidence and prediction accuracy. A three-phase experimental study is conducted to test the hypotheses. Results suggest that both expert designers and non-expert designers are poorly calibrated and overconfident. Nonetheless, expert designers are better calibrated when designing products for a foreign market than for their home market. Theoretical and managerial implications are discussed.

Mikkeller is a renowned Danish gypsy craft brewing business that was born global. Its inspiring portfolio of beers, blended using exotic ingredients and unusual processes, are much sought after by craft beer geeks. Founder Mikkel Bjergso used an international partnership strategy to build a highly creative beer brand that is outstandingly innovative, but decided not to invest in his own brewing facilities or sell beer in his home market, favouring an international first manufacturing and marketing strategy. This marketing strategy case encourages students to evaluate contextual consideration of business model selection, entrepreneurial marketing, and international market entry strategy.

This paper investigates the dynamics of information processing for equity prices and exchange rate of cross-listed firms. Using high-frequency data and a novel structural setting, I disentangle the effects on firm value from the exchange rate from the other determinants of a firm's cash flow. In general, the results suggest that the foreign market is faster than the home market and that there is a net positive relationship between the value of the domestic currency and the firm's value. This result is linked to the likely partially segmented market characteristic of the home market. Robustness checks confirm the results.

Using a sample of firms from 40 countries cross-listed in the U.S. during the 1982–2018 period, we find that the discrepancy between a firm’s home industry valuation and its corresponding U.S. industry valuation—the relative industry valuation—is an important factor in the listing decision and valuation after listing. International firms whose home market industries are undervalued relative to the corresponding U.S. industries are more likely to cross-list. They also enjoy permanent valuation gains after listing. These firms issue more equity, invest more, and realize higher growth rates.

Antidumping proponents in the U.S. often argue that foreign firms use profits obtained behind home market barriers to "subsidize" "unfair" pricing abroad. This paper examines this "sanctuary market" hypothesis for antidumping petitions against U.S. manufacturing exporters. Econometric results suggest that there is little evidence that U.S. manufacturing firms facing antidumping actions abroad are beneficiaries of a home market sanctuary during the 1994-2007 time period. Instead, U.S. firms in capital- intensive sectors that are successful exporters are more likely to face antidumping petitions abroad. This evidence suggests that current antidumping rules need reform so that firms not benefitting from sanctuary markers may avoid antidumping actions.

This paper introduces two dimensions of product attributes in the context of internationalization: domain- and culture-specificity. Products can be high or low in domain- or culture-specificity, thereby being one of four broad categories in a two-by-two matrix. This framework of product attributes helps explain a series of gradations on how cultural difference influences the difficulty of selling a product internationally. By examining four cases, one from each of these categories, this paper shows that different product attributes affected the difficulty or ease with which the products of these firms were internationalized. While all four cases were able to derive international sales, the domain- and culture-specificity of their products constrained the international markets these products could feasibly enter into, and how soon this could take place. In general, more culture-specific products face higher hurdles in a culturally dissimilar international market compared with the home market. However, given products of similar culture-specificities, highly domain-specific products tend to have less difficulty in selling to a culturally different international market than products that are not domain-specific.

This study uses minute-by-minute data to analyze price discovery dynamics between the Nikkei 225 index in Japan and the E-mini S&P 500 index futures in the United States across their respective time zones. Specifically, we apply Gonzalo and Granger's (1995) and Hasbrouck's (1995) models to examine long-term price discovery in the markets and use a Granger-causality test to analyze the short-run dynamics of information transmission. We find a consistent result in the short- and long-run price discovery process. Our results show that the Nikkei 225 index futures price is influenced mainly by information from the location of trading rather than from the home market, supporting the trading-place-bias hypothesis. We also find that the leading role in information transmission has changed over time, from the United States in 2011–2012 to Japan in 2013.

Propósito do tema: Nos últimos anos o turismo residencial tem obtido uma atenção em Portugal e na região do Algarve. Ele foi identificado pelo plano nacional de turismo como um dos produtos estratégicos. No Algarve o seu peso é relevante para a dinâmica do turismo. Objetivo: Este estudo está focado na percepção dos gestores públicos quanto ao turismo residencial no Algarve, em particular os pontos fortes, pontos fracos, oportunidades e ameaças que este produto cria para o desenvolvimento da região. Metodologia e abordagem: O estudo utiliza uma abordagem descritiva e exploratória a partir de um questionário online realizado a todos os municípios do Algarve. O estudo centra-se na visão dos municípios como atores-chave envolvidos no desenvolvimento do mercado de turismo residencial. Resultados: Os resultados são úteis para entender as trajetórias do turismo residencial, apresentando informações úteis para estratégias futuras. Originalidade: Observou-se que os fatores econômicos têm influência direta nos pontos fortes e ameaças, enquanto as fraquezas são mais percebidas como aspectos sociais e ambientais e as oportunidades exigem articulação entre todas as dimensões, econômicas, sociais e ambientais. Proposal: In the last year’s second home tourism has obtained a relevant attention in Portugal, and especially in the Algarve region. It has been identified by the national tourism plan as one of the strategic products. In the Algarve second home market important for the tourism dynamics. Objective: This study focuses on the perception of government agents in the Algarve about second home tourism, in particular the strengths, weaknesses, opportunities and threats that this product creates for regional development. Methodological Design: The study uses a descriptive and exploratory approach with an online survey applied to all municipalities in the Algarve. Results: The results are helpful to understand second home tourism trajectories by presenting useful information to future strategies. Originality: It was observed that economic factors directly influence strengths and threats, the weakness are more related to social and environmental aspects, and the opportunities are linked to all dimensions, economic, social and environmental. Finalidad tema: En los últimos años el turismo residencial ha obtenido una atención relevante en Portugal y en la región del Algarve. Ha sido identificado por el plan nacional de turismo como uno de los productos estratégicos. En el Algarve su peso es relevante para la dinámica del turismo. Meta: Este estudio se centra en la percepción de los gestores públicos en relación con el turismo residencial en el Algarve, en particular, las fuerzas, debilidades, oportunidades y amenazas que este producto genera para el desarrollo de la región. Metodología y el enfoque: El estudio utiliza un enfoque descriptivo y exploratorio con una encuesta online aplicada a todos los municipios del Algarve. El estudio se centra en la visión de los municipios como actores clave en el desarrollo del turismo residencial. Los resultados son útiles para comprensión de las trayectorias del turismo residencial, infor-mación útil para las estrategias futuras. Originalidad: Se observó que los factores económicos tienen una influencia directa sobre los puntos de fuerzas y amenazas, mientras que las debilidades son más percibidas como los aspectos sociales y ambientales y, al final, en las oportunidades existen vínculos entre todas las dimensiones, económicas, sociales y ambientales.

Purpose – The purpose of this paper is to investigate price discovery for cross-listed stocks on the New Zealand Exchange (NZX) and the Australian Stock Exchange (ASX) and find out the determinants of price discovery between the two markets. Design/methodology/approach – Gonzalo Granger Component Shares and Hasbrouck Information Shares were estimated annually for a sample of 19 cross-listed stocks between 1998 and 2012. Then dynamic panel regressions were used to investigate the driving factors behind price discovery between the NZX and ASX. Findings – Strong downward trends were observed in the contribution to price discovery of the NZX, both for New Zealand firms cross-listing on the ASX and Australian firms cross-listing on the NZX. While in the early years in our sample period, price discovery is dominated by the home market, by 2012, 50 per cent of price discovery for New Zealand firms takes place on the ASX, and the NZX acts as a satellite market for Australian firms. It was also observed that the NZX share of trading activity has a strong positive effect on the NZX level of price discovery, while there is a negative relationship with relative bid–ask spreads. Practical implications – Results suggest that the importance of the NZX relative to the ASX with regards to price discovery is decreasing over time. Given the importance of price discovery for exchanges, such a finding is concerning for the NZX. The determinants of price discovery found in the paper, such as relative volume and spreads, do, however, offer some guidance on how the NZX could regain price discovery. Originality/value – This paper offers a longer and broader analysis of price discovery between the NZX and ASX, two highly integrated markets, and extends previous work by exploring the drivers of price discovery in a panel setting.

In Windows on the World, participants explore how national culture differences may affect managerial practices when expanding into another country. In the exercise, a U.S. niche grocery retail chain plans expansion into Brazil and China. The role-play is between a consultant team and a client team that has hired them. The consultant team gives expert advice about which, if any, of the managerial practices in place in the home market might require modification in Brazil or China. Facilitators can suggest “cultural due diligence” as a way to increase the likelihood of successful international business expansion.

This paper documents the global trading volume distribution of cross-listed stocks and examines factors that make a host market competitive in attracting order flows between host and home markets. We hand-collect a sample of 642 cross-listed firms in 10 host countries with 771 cross-listings from 39 home countries between 1981 and 2010. We document that, for the first time, whether a host market shares the language or legal origin with the home markets has significant impact on attracting order flows. We also find that host markets are more successful in attracting trading volume when they have a higher information factor, have lower bid-ask spreads, provide better investor protection and information disclosure, and are closer to the home market. Additionally, small but mature high-tech firms with high growth rate, volatile stock returns and high foreign sales are prone to execute more trading in host markets.

We characterize mixed-strategy equilibria when capacity-constrained suppliers can charge location-based prices to different customers. We establish an equilibrium with prices that weakly increase in the costs of supplying a customer. Despite prices above costs and excess capacities, each supplier exclusively serves its home market in equilibrium. Competition yields volatile market shares and an inefficient allocation of customers to firms. Even ex-post cross-supplies may restore efficiency only partly. We show that consumers may benefit from price discrimination whereas the firms make the same profits as with uniform pricing. We use our findings to discuss recent competition policy cases and provide hints for a more refined coordinated-effects analysis.

We examine the effect of increased competitive pressures within and outside the home market on the innovation of local firms. We argue that the relationship between exposure to foreign competition in domestic and international markets and firm innovation is better captured by imitative innovation than by radical innovation. We hypothesize that exposure to foreign competition inside and outside the home country is positively associated with local firms’ imitative innovation. Further, we argue that this relationship is contingent on institutional factors, including the role of the government, the legal system, and natural resource endowment. Using a dataset of 949 firm-year observations in the Middle East and North Africa (MENA) region, we find empirical support for the positive impact of competitive pressure on imitative innovation.

The Trump administration is known for slapping tariffs on products from countries, like China, that it deems to be trading unfairly with the US. Less well known is its strict enforcement of laws against dumping—when a foreign company sells a product in the US at prices below its cost of production or home market rate. In the latest such action, the US Commerce Department has made a preliminary determination that acetone producers in Belgium, South Africa, and South Korea are dumping the chemical in the US. In response, the department is slapping duties on acetone from the accused companies ranging from 8 to 48%. Since the beginning of the Trump administration, the Commerce Department has initiated 182 antidumping and countervailing duty investigations—231% more than during the comparable period in the Obama administration, it says. Other imported chemicals recently subject to the department’s scrutiny include glycine, magnesium, polyester sheet and yarn

This paper investigates whether foreign subsidiaries outperform their parent banks in terms of profitability and what determines this outcome. Using a sample of multinational banks and their subsidiaries in a large number of countries, this study shows that, on average, foreign subsidiaries are less profitable than their parent banks. However, the results show that foreign subsidiaries tend to perform better than their parent banks if they are well capitalized, have low overhead costs and loss low provision. I find also show that foreign subsidiaries tend to perform better than their parent banks if the latter are underperforming in the home market. While, the legal distance between host country and host country is an important determinant of the profitability of the subsidiary in relation to its parent bank, to a lesser extent, are the host market’s characteristics. Finally, foreign banks are more likely to outperform parent banks in developing markets than in developed countries. However, different bank and host country determinants influence the profitability of the subsidiaries in these countries.

We investigate the inter-market return and volatility linkages for an atypical case of firms with foreign IPOs that subsequently cross-listed in their domestic market. In particular, our data set consists of a unique sample of 29 Israeli firms that went public in the US (host market) and then cross-listed in the Israeli market (home market). To estimate the spillover effects, we employ bivariate GARCH models, assuming both constant and dynamic conditional correlation specifications. At the aggregate market level, we find unidirectional mean and volatility spillovers from the US to the Israeli market. For the portfolios of Israeli cross-listed stocks, we report significant spillovers, at both the mean and volatility levels, from the underlying stocks in the Israeli market to their American Depository Receipts (ADRs) but not vice versa. Thus, the home market dominates the host market in the price discovery process in this atypical international cross-listing case, providing new evidence in support of the home bias hypothesis. We also find that external shocks originating from the Middle East peace process have no impact on the conditional correlation between the two markets but external shocks originating from the world and regional markets impact the conditional correlation positively.

Liability of foreignness has been one of the building blocks of theories of multinational enterprises. This paper looks at a parallel issue – the liability of localness that local firms may face as a result of foreign firms’ presence in their country. The results show that local Chinese firms enjoy location-based advantages over their foreign counterparts and these, together with their firm-specific advantages, have significant positive effects on their performance. The superior firm-specific advantages of foreign firms appear to erase the magnitude of such effects and create a significant negative impact on local Chinese firms’ performance, and this effect is heightened by foreign firms’ multinationality advantages. The research suggests that local Chinese firms incur a liability of localness, and the extent of the negative impact of such liability on local firm performance is largely dependent on the relative strength of various advantages that the local and foreign firms possess.

This paper focuses on a study of Tesco Plc conducted in 2011, in which we trained a multicultural team of nine Asian managers to become in-house ethnographers of Tesco UK for a 3-month period studying 52 stores in the UK with dual objectives of helping Tesco (1) to understand and evaluate the core practices that comprised the essence of Tesco's home country advantage, and (2) to identify sources of learning from Tesco's foreign subsidiaries to aid in reinvigorating its core in light of increasing competition in its home market. We believe that the strategic and training dimensions of this project constitute a new contribution to the field of organisational ethnography, particularly with regard to the use of a multinational ethnographic team of non-native speakers of English.

This study provides a comprehensive examination of price discovery for American Depositary Receipts (ADRs) originating in Latin America. Using data on 87 ADR issues from Latin America, the empirical approach allows for an endogenous role of exchange rate fluctuations in the price discovery process. The results indicate that while exchange rates are not primarily determined by stock market prices, there is significant flow of information from the stock market to currency markets particularly in Brazil and Mexico. In addition, the results reveal a mix of price discovery locations across Latin America. The conventional finding that the home market matters most for price discovery holds only for Chile. For ADRs from Brazil, the home and U.S. markets contribute equally to price discovery while the U.S. market dominates in price discovery for ADRs from Argentina and Mexico. Results from a cross-sectional analysis indicate that higher levels of illiquidity at home are consistent with higher contributions to price discovery from the U.S. market.

We characterize legality and incidence of short selling in a worldwide, multimarket framework. Home country short selling restrictions curtail home market stock borrowing by 45% and reduce short selling of the country's American Depository Receipts (ADRs) by 68% due to regulatory reach. Also, the 2008 US ban on short selling of financial firms reduced borrowing in foreign locations. These findings are robust to controls for option availability, enforcement, returns, firm size, trading volume, dividends, ADR level, volatility, days-to-cover, and industry sector. Further, we show that investor conduct resulting from adherence to professional standards is a more powerful mechanism of regulatory reach than intergovernment cooperation.

Im Jahr 2012 war international, aber auch national ein Zuwachs des Steinkohlenverbrauchs zu verzeichnen. Weltweit ist die Steinkohle weiterhin der Energietrager Nr. 1 in der Stromerzeugung, was zu einem steigenden Bedarf an Kraftwerkskohle fuhrt. In Deutschland nahm die Steinkohlenverstromung in diesem Jahr ebenfalls zu. Dagegen war die Kokskohlen- und Koksnachfrage der Stahlindustrie konjunkturell bedingt rucklaufig. Der erhohte Einsatz der Kohle zur Stromerzeugung hierzulande erklarte sich neben dem Ruckgang der Kernkraft aus einem relativ schlechten “Windjahr” sowie gesunkenen Einfuhrpreisen und niedrigen CO2-Preisen, die zusammen einen deutlichen Preisvorteil fur die Kohle gegenuber dem Kraftwerkseinsatz von Erdgas begrundeten. Dahinter stand vor allem der Preisdruck billiger US-Kohle, die auf ihrem Heimatmarkt teilweise durch die Expansion des Shale Gas verdrangt wurde und sich ein Absatzventil in Europa suchte. Die heimische Steinkohle hat ihren Anpassungs- und Auslaufprozess planmasig fortgefuhrt, weitere zwei von bis dahin noch funf deutschen Bergwerken sind 2012 stillgelegt worden. Die RAG Aktiengesellschaft, die den Steinkohlenbergbau hierzulande betreibt, beginnt mit den Vorbereitungen auf die Nachbergbauzeit. Hard coal in Germany 2012 Coal consumption increased internationally in 2012, and also in Germany. Coal remains the leading source of energy for electricity generation, which led to increasing demand for coal for power stations. Germany also saw increased coal consumption in power stations this year. In contrast, the demand for coking coal and coke for the steel industry fell in line with reduced production. The increased use of coal for electricity generation in Germany can be explained not only by the reduction of atomic power but also by a relatively poor “wind year” and lower import prices and low CO2 prices, which combined to give coal a considerable price advantage over gas for use in power stations. This is due above all to the influence on prices of cheaper US coal, which has been partially displaced in its home market by the expansion of shale gas and found an outlet in Europe. Coal production in Germany has continued the process of adaptation and phasing out, with a further two of the five German mines being closed in 2012. The RAG AG, which operates coal mines in Germany, is already preparing for the era without coal mines.

In this paper we propose an innovative measure for information flows between stock exchanges. We develop an intensity-based information share using Russell’s (1999) autoregressive conditional intensity model. Thereby we maintain the irregular nature of financial high frequency data and use durations and timing of price changes to determine the informationally dominant market. From our empirical application to US-listed Canadian stocks we conclude that the home market mostly reflects information first. On the basis of a cross-sectional analysis we find a positive correlation between the intensity-based information share and liquidity.

We develop a two-country model with heterogeneous producers and rent-sharing at the firm level. We identify two sources of a multinational wage premium: A composition effect because multinational firms are more productive, make higher profits, and pay higher wages, and a firm-level wage effect, because a firm makes higher global profits and thus pays higher wages in its home market when becoming multinational. With two identical countries, the wage premium is fully explained by firm characteristics. Allowing for technology differences between countries, a residual wage premium exists in the technologically backward country but not in the advanced country.