arbitrage pricing theory

• International integration and coordination in the global factory.

... * Global strategy * Internalisation theory . Introduction . The new institutional form known ... country, because if they did not then arbitragers would buy up their product in the cheaper markets ... MNEs retain effective control over the pricing of their products--especially when products are br...

• Management International Review
• Band 51 Nr. 2, März 2011

• A Theoretical Perspective On the Location of Banking Fdi

The paper models location of banking FDI under volatile demand conditions. In the model, information arrives either through passage of time or though presence in the foreign market. The model is also extended to analyze strategic and simultaneous FDI. The results show that market entry evolves from deferring FDI to partial FDI and only then to full FDI. The switch to partial FDI occurs faster when banks can gather information only through a presence in the foreign market. The switch to partial FDI does not occur when immediate full FDI enables more efficient production. The results are at odds with models developed for predictable demand conditions in which banks switch straight from deferring FDI to full FDI. The paper generates an integrated view of the location of banking FDI.

Introduction. Internalization theory applied to me banking firm is concerned with why b...The popular Black-Scholes pricing formula assumes a Brownian motion in the movement ... it connotes a particular feature of the arbitrage process. These assumptions obscure the more genera...

• Management International Review
• Band 49 Nr. 2, März 2009