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The role of language in bilateral FDI: a forgotten factor?
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posted on 2023-06-09, 16:55 authored by Palitha Konara, Yingqi WeiThe rapid development of modern transportation information and communication technologies has accelerated the pace of globalization. Multinational enterprises (MNEs) have increasingly broadened their use of foreign direct investment (FDI), and as a result they often need to deal with multiple languages and the associated administrative and transactions costs that come with language differences (Luo and Shenkar, 2006; Welch et al., 2001). FDI involves production, organization and management of business activities. The key to the success often lies in effective interactions and communications within MNEs and between MNEs and economic agents in host countries. To this end, language distance (LD) between home and host countries tends to influence FDI location choice.
History
Publication status
- Published
Publisher
Palgrave MacmillanExternal DOI
Page range
212-227Pages
295.0Book title
International business and institutions after the financial crisisPlace of publication
LondonISBN
9781137367198Series
The Academy of International BusinessDepartment affiliated with
- Business and Management Publications
Research groups affiliated with
- International Business Publications
Full text available
- No
Peer reviewed?
- Yes
Editors
Yama Temouri, Chris JonesLegacy Posted Date
2019-02-19Usage metrics
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