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Title: |
The Reverse Direct Investment: The Case of the
Korean Consumer Electronics Industry |
| Author: |
Jun, Yongwook |
| Author
Affiliation: |
Korea Inst Econ
Tech |
| Source: |
International Economic Journal, Autumn 1987, v. 1, no. 3, pp. 91-104 |
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Publication Date: |
Autumn 1987 |
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Abstract: |
This paper discusses the nature of foreign
direct investments by firms from developing countries in industrialized
country markets, which is coined as "reverse direct investment." On the
basis of the experiences of the Korean consumer electronics firms
operating in the U.S., this paper identifies the nature of the
investment as "defensive" and "premature" strategic moves of firms in
the internationalization process. There investments are made not to
exploit firms' monopolistic firm-specific advantages, but to protect
their export markets at an earlier time than economic forces might have
led them to do. However, in the process, firms try to convert their home
country-specific advantages (e.g. low labor cost) into firm-specific
ones as much as possible. |
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