Peer-Reviewed Journal Details
Mandatory Fields
Dewit, G
2002
August
Economica
Risky business: Multinationals, uncertainty and asymmetric insurance
Published
3 ()
Optional Fields
PRICE UNCERTAINTY FUTURES MARKETS EXCHANGE-RATE FIRM
69
357
370
A partial equilibrium model is used to examine the international production allocation of a two-plant multinational firm that is confronted with uncertainty with respect to foreign sales. The firm produces identical products in both plants, using firm-specific factors. The internationally price-discriminating multinational has monopoly power in both segmented markets. The analysis focuses on how asymmetric insurance facilities between the firm's home and host country influence its international production allocation and level of intra-firm trade.
OXFORD
0013-0427
Grant Details