Foreign subsidiaries are at a disadvantage as compared to domestic enterprises, which is especially the case for emerging market firms in more developed economies. In this paper we apply liability of foreignness (LOF) concept to address the issue of these disadvantages. We consider LOF effects associated with equity vs. non-equity entry modes for Russian firms when penetrating the German market. The paper presents the results of a pilot study of 41 subsidiaries of Russian firms operating in different regions of Germany. Our results show that investors are more concerned about information, customers and partnerships, which can be explained by preeminent reliance on their own resources, while exporters appeared to be driven mostly by image considerations indicating minor interest in other characteristics of the host market. Although both exporters and investors experience significant negative effects from the lack of proper institutional and business knowledge on the host market, these effects vary for equity and non-equity entry modes. We suggest instruments to mitigate these effects, including cooperation with institutional agents, which is especially important for FDI strategy.

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The papers aims to analyse the key drivers for internationalisation in furniture industry by taking into consideration the cross-border activities of selected furniture manufacturers in Poland and Germany in comparison. The results show some similarities in internationalisation strategy design of selected furniture manufacturers in both countries. Export tends to be the predominant foreign market entry mode, and major motives to internationalise tend to have a reactive nature. There are some differences with regard to manufacturing location decisions, whereby the general assumption is confirmed that certain manufacturers are in a more advantageous position by concentrating their production at home.

To achieve sustainable growth, China facilitates outward foreign direct investments (FDI) in natural resources and technology through large supportive policies and massive financing, particularly through the expansion of its state-owned companies into foreign markets. This trend has accelerated economic growth in Australia but has also raised national security concerns regarding foreign investments. This paper discusses the problem of balancing foreign investment and national security and aims to stimulate discussion on the extent of regulations necessary for FDI in critical infrastructure. This paper will be interesting for host-country policymakers balancing inward FDI and national security concerns through appropriate screening mechanisms.

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