Abstract
This note shows that the explanation of Direct Foreign Investment based on the existence of a currency premium implies a bias in the home capital market of the multinational firm. An alternative and complementary explanation of the choice between Licensing and Direct Foreign Investment may be found in “disagreements” in the negotiations for a license.
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*Rolf Mirus is Associate Professor in the Faculty of Business Administration and Commerce, The University of Alberta, Edmonton, Alberta, Canada. His interests center on international financial markets.
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Mirus, R. A Note on the Choice between Licensing and Direct Foreign Investment. J Int Bus Stud 11, 86–90 (1980). https://doi.org/10.1057/palgrave.jibs.8490599
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DOI: https://doi.org/10.1057/palgrave.jibs.8490599