The internationalization of production requires each multinational firm to determine a local content rate for its product made and sold in a foreign country. We investigate the local content rate and pricing decisions for a multinational firm who competes with a local firm in a market without and with a local content requirement (LCR). We derive conditions under which the multinational firm meets the LCR. We also investigate the impact of the LCR on the two firms and how the impact is affected by the technology level in the host country compared to that in the multinational firm's parent country.
|Publication status||Published - 5 Jan 2019|
|Event||The 10th POMS-HK International Conference 2019 : Operations Excellence for a Better World - City University of Hong Kong, Hong Kong|
Duration: 5 Jan 2019 → 6 Jan 2019
http://www.cb.cityu.edu.hk/ms/pomshk2019/conferenceprogram.htm (Conference program)
|Conference||The 10th POMS-HK International Conference 2019 : Operations Excellence for a Better World|
|Period||5/01/19 → 6/01/19|
|Other||The Tenth POMS-HK International Conference was organized by City University of Hong Kong from January 5 to 6, 2019. Under the theme Operations Excellence for a Better World, this conference intended to provide a platform for exchanging research ideas, industry practice, and managerial insights.|
- Game theory
- local content rate
- local content requirement
- duopoly market
LIANG, L. P., LENG, M., & LIU, N. (2019). Local-content and pricing decisions of a multinational firm in a duopoly market. The 10th POMS-HK International Conference 2019 : Operations Excellence for a Better World, Hong Kong.