Analysing foreign market entry – The choice between greenfield investment and acquisitions

Abstract

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Trade liberalization and industrial restructuring through mergers and acquisitions

“…Such a home-market-type e¤ect may also explain the stronger increases in Canadian acquisitions in the U.S. in the most-a¤ected group, which took place despite easier export access to this market. 21 …”

“…Another group of papers in International Trade does look at M&A but mostly in the form of crossborder transactions and in the context of foreign direct investment (e.g. Görg, 2000;Horn and Persson, 2001; Nocke and Yeaple, 2004;di Giovanni, 2005). Rather than analyzing M&A as a means of industry restructuring, they examine its role as an alternative form of foreign market access in addition to green…eld investment and exports.…”

Does outward FDI by Polish multinationals support existing theory? Findings from a quantitative study

“…It should be pointed out in this context that the link between FDI motives and FDI establishment modes has not been an intensively researched issue in IB studies as compared to other determinants of choice between green-fields, acquisitions or joint ventures [see e.g. Barkema and Vermeluen 1998;Larimo 2003;Hennart and Reddy 1997;Chen and Hennart 2002;Buckley and Casson 1998;Gorg 2000;Kogut and Singh 1988;Padmanabhan and Cho 1995;Slangen and Hennart 2008]. More importantly the said relationship does not have a long and intensive research tradition in the context of developing country MNEs as it does for those in developed country.…”

Entry mode choice of multinational banks

“…Gilroy and Lukas (2006), Görg (2000), Iranzo (2003), as well as Ra¤ et al (2006) set up models in which a …rm's decision between green…eld and acquisition entry depends on di¤erences in the marginal costs of foreign and domestic …rms. As in Eicher and Kang (2005) or Müller (2007), it is generally assumed that a green…eld entrant produces at lower marginal costs than domestic …rms.…”