Local-content and pricing decisions of a multinational firm in a duopoly market

Research output: Other Conference ContributionsPresentation

Abstract

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.
Original languageEnglish
Publication statusPublished - 5 Jan 2019
EventThe 10th POMS-HK International Conference 2019 : Operations Excellence for a Better World - City University of Hong Kong, Hong Kong
Duration: 5 Jan 20196 Jan 2019
http://www.cb.cityu.edu.hk/ms/pomshk2019/conferenceprogram.htm (Conference program)

Conference

ConferenceThe 10th POMS-HK International Conference 2019 : Operations Excellence for a Better World
CountryHong Kong
Period5/01/196/01/19
OtherThe 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.
Internet address

Keywords

  • Game theory
  • local content rate
  • local content requirement
  • duopoly market

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    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.