although a significant amount of research has explored the patterns of FDI little work has been done to assess what determines why some cross border mergers are expect to result in higher synergies when compared to others
sonenshine notice that while most cross border mergers take place among firms in developed countries an increasing amount of activity has been occuring in emerging markets
why do firms locate production in a foreign country rather than licensing or exporting
Sonenshine consider that firms primarily engage in cross border mergers versus other forms of FDI to gain control over assets particularly due to difficulties writing or enforcing complete contracts
Singh and Jun highlight that from a theoretical point of view three question dominate the FDI literature
why do national firms evolve into multinational organization
why do firm locate production in a foreign country rather than licensing or exporting