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International Food and Agribusiness Management Review >
Volume 01, Issue 03, 1998 >
Please use this identifier to cite or link to this item:
http://purl.umn.edu/34511
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| Title: | MANAGING EXPOSURE OF DIRECT FOREIGN INVESTMENT TO POLITICAL RISK: THE CASE OF FOOD BUSINESSES IN CHINA |
| Authors: | Liu, Yan
Bjornson, Bruce |
| Issue Date: | 1998 |
| Abstract: | Direct foreign investment (DFI) allows a multinational corporation (MNC) to generate and appropriate extra-normal profits from its unique assets in a foreign market. China has become increasingly attractive for foreign investment over the past 20 years. This entails political risk, but MNCs can reduce the risk by relying heavily on MNC-specific assets, often in the form of tacit knowledge. A joint venture with a local partner creates an incentive for a local stakeholder to shield the DFI from political risks and allows the partner to contribute location-specific assets to the venture, further reducing the MNCs risk. |
| URI: | http://purl.umn.edu/34511 |
| Institution/Association: | International Food and Agribusiness Management Review>Volume 01, Issue 03, 1998 |
| Total Pages: | 14 |
| Language: | English |
| From Page: | 359 |
| To Page: | 372 |
| Collections: | Volume 01, Issue 03, 1998
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| 01030359.pdf | 856Kb | PDF | View/Open |
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