Abstract
This paper investigates the impact of several factors on the foreign investment of U.S. advertising agencies by using the theories on the determinants of foreign direct investment by manufacturing firms. For the two years examined, the hypotheses about the impact of host country market size, host country geographic proximity, firm size, firm's international operations experience, oligopolistic reaction, and presence of home country customers abroad are all confirmed. This paper also investigates the impact of oligopolistic reaction among the top ten and the second ten largest agencies and finds a stronger impact for the former.
This is a preview of subscription content, log in via an institution to check access.
Similar content being viewed by others
Author information
Authors and Affiliations
Additional information
*Vern Terpstra is Professor and Chair, International Business, at the University of Michigan. He is the author of International Marketing, The Cultural Environment of International Business, and a number of articles on international marketing and business.
**Chwo-Ming Yu is Assistant Professor of Business Administration at the University of Illinois at Urbana-Champaign. He received his Ph.D. in International Business from the University of Michigan. His research interests are in the area of international management and marketing.
Rights and permissions
About this article
Cite this article
Terpstra, V., Yu, CM. Determinants of Foreign Investment of U.S. Advertising Agencies. J Int Bus Stud 19, 33–46 (1988). https://doi.org/10.1057/palgrave.jibs.8490373
Received:
Revised:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1057/palgrave.jibs.8490373