Firms' Financial Benefits and Costs of Internationalization Today

Publikationstyp
Research Report
Date Issued
2013
Sprache
English
Author(s)
Richter, Nicole Franziska  
Wulhorst, Fabian  
Institut
Personalwirtschaft und Arbeitsorganisation W-9  
TORE-URI
http://hdl.handle.net/11420/4162
Journal
Management at TUHH research paper series  
First published in
Management at TUHH research paper series  
Number in series
12
Citation
Management @ TUHH Research Paper Series, 12
Publisher Link
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=2340071
In this paper, we collect and contrast theoretical arguments on the benefits and costs of internationalization and develop a comprehensive and structured overview of different theoretical concepts. We also critically evaluate these concepts in terms of their practical importance: this refers to both the relevance for multinational firms (MNEs) today, and to the specificity or applicability to what we term benefits and costs from a financial accounting perspective. We find a slight overweight of positive financial effects of internationalization, which – however – is less clear as might practically have been assumed. Without directly incorporating contextual or management aspects, we are unable to draw theoretical inference on a strong positive or negative development of financial positions. This paper therefore provides a conceptualization of different cost and revenue developments – nothing more, but also nothing less.
Subjects
Benefits of internationalization
costs of internationalization
liabilities of foreignness
liabilities of multinationality
costs of doing business abroad
DDC Class
650: Management