Regional theories of the MNE: post the 2008 economic crisis Online publication date: Sat, 13-Sep-2014
by Colin Dale
International Journal of Economics and Business Research (IJEBR), Vol. 8, No. 3, 2014
Abstract: One model of the internationalisation strategies of large MNEs is 'regional theory', which predicts the international diversification of MNEs as movement into proximate markets and low geographical spread. 'Regional theory' suggests that the majority of firms - both MNEs and smaller, local firms - limit their diversifications to their home regions. This paper proposes instead that there are two different models evidenced. The data demonstrate the Yule-Simpson Paradox, a statistical anomaly when two different patterns cross-cancel and will suggest a third, incorrect outcome. There are also important intra-firm variations inside large MNEs that are not addressed by the original research. To test these hypotheses, we re-examine 'regional theory' after the 2008 crisis. The global automotive industry is used as a case study and shown to exhibit these multi-layered effects in its operation. The apparent conclusion is the 2008 crisis was a shock, but it has not prevented ongoing economic globalisation.
Existing subscribers:
Go to Inderscience Online Journals to access the Full Text of this article.
If you are not a subscriber and you just want to read the full contents of this article, buy online access here.Complimentary Subscribers, Editors or Members of the Editorial Board of the International Journal of Economics and Business Research (IJEBR):
Login with your Inderscience username and password:
Want to subscribe?
A subscription gives you complete access to all articles in the current issue, as well as to all articles in the previous three years (where applicable). See our Orders page to subscribe.
If you still need assistance, please email subs@inderscience.com