English, Article edition: Locating in France or Abroad: the Choice of French Firms Thierry Mayer; Isabelle Mejean; Benjamin Nefussi

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Bookmark: http://trove.nla.gov.au/version/159884
Physical Description
  • article
Language
  • English

Edition details

Title
  • Locating in France or Abroad: the Choice of French Firms
Author
  • Thierry Mayer
  • Isabelle Mejean
  • Benjamin Nefussi
Physical Description
  • article
Notes
  • The number of subsidiaries created abroad by French manufacturing firms has strongly increased during the lastgreatly in fifteen years. In a globalized economy, companies tend more and more to locate more and more abroad to get closer to dynamic markets and take advantage of lower costs. However, a model explaining location choices of location that integrates these phenomena brings out a major bias in favor of the home territory. The probability of a medium-sized firm creating a subsidiary in France is ten times higher than of it doing so in a country that is comparable in terms of market, production and transaction costs (distance, language, etc.). This bias can be explained in large part by the density of financial and commercial relations that a firm has in its own country. It is tending to decline insofar as the burgeoning number of foreign subsidiaries abroad is gradually building up this type of network in the countries of location.
  • Relocation; international firms; globalization
  • RePEc:cii:cepill:2007-264
Language
  • English
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