Abstract
This paper empirically tests the impact of oligopolistic reaction and some firm–related and host country–related factors on FDI activities in the U.S. tire and textile industries. The results reveal that in an oligopolistic industry, firms' motivation of FDI is based on the behavior of rivals as well as host country–related and firm–related factors, while in a more competitively structured industry, firms do not actively counter the competitors' FDI activities.
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*Chwo-Ming Joseph 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.
**Kiyohiko Ito is a Ph.D. candidate at the School of Business Administration at the University of Michigan. His research interests include competitiveness of Japanese firms and management of MNCs.
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Yu, CM., Ito, K. Oligopolistic Reaction and Foreign Direct Investment: The Case of the U.S. Tire and Textiles Industries. J Int Bus Stud 19, 449–460 (1988). https://doi.org/10.1057/palgrave.jibs.8490391
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DOI: https://doi.org/10.1057/palgrave.jibs.8490391