The role of language in bilateral FDI: a forgotten factor?

Konara, Palitha and Wei, Yingqi (2014) The role of language in bilateral FDI: a forgotten factor? In: Temouri, Yama and Jones, Chris (eds.) International business and institutions after the financial crisis. The Academy of International Business . Palgrave Macmillan, London, pp. 212-227. ISBN 9781349474431

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The rapid development of modern transportation information and communication technologies has accelerated the pace of globalization. Multinational enterprises (MNEs) have increasingly broadened their use of foreign direct investment (FDI), and as a result they often need to deal with multiple languages and the associated administrative and transactions costs that come with language differences (Luo and Shenkar, 2006; Welch et al., 2001). FDI involves production, organization and management of business activities. The key to the success often lies in effective interactions and communications within MNEs and between MNEs and economic agents in host countries. To this end, language distance (LD) between home and host countries tends to influence FDI location choice.

Item Type: Book Section
Schools and Departments: School of Business, Management and Economics > Business and Management
Research Centres and Groups: International Business
Depositing User: Palitha Konara
Date Deposited: 19 Feb 2019 12:38
Last Modified: 19 Feb 2019 12:38
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