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- W2002953326 abstract "A home firm signals her private cost information by expanding in a foreign firm’s country. Credible signaling to deter counter-entry may occur through a direct investment (but not through exports), and may even entail entering an unprofitable market. While this produces social benefits, uninformative signaling may be welfare-reducing. Hence, we argue that moderate to high location costs may be socially desirable. We also show that there are not simple monotonic relationships between technology/demand conditions and firms’ entry modes. Thus, the signaling interpretation of international expansion makes it possible to explain some controversial empirical findings on a theoretical ground." @default.
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- W2002953326 date "2007-09-01" @default.
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- W2002953326 title "Foreign Market Entry Strategies under Asymmetric Information" @default.
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- W2002953326 doi "https://doi.org/10.1111/j.1467-9396.2007.00681.x" @default.
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