Modeling of Across-Chain Network Dynamic Competition for MNC in Industrial Cluster

2013 ◽  
pp. 236-256
Author(s):  
Chunling Liu ◽  
Jizi Li ◽  
Guo Li ◽  
Xiaogang Cao
Keyword(s):  
Foreign Direct Investment ◽  
Variational Inequality ◽  
Direct Investment ◽  
Industrial Clusters ◽  
Network Dynamic ◽  
Network Equilibrium ◽  
Supply Chain Networks ◽  
Competitive Edge ◽  
Network Equilibrium Problem ◽  
Modified Algorithm

The huge market and perfect production system in China are attracting more multi-national companies’ interest to invest in China in the form of Foreign Direct Investment (FDI). Therefore, multi-national companies are willing to integrate and optimize global supply chain networks of their own, which enable them to reduce cost and improve market response. As a result, multi-national companies usually embed into local industrial clusters through financial and technological comparative merits to sharpen their competitive edge. This paper considers the across-chain network equilibrium problem involving process of competition and melting between this new global chain and an already existing local chain. The authors model the optimizing behavior of these two chains, derive the equilibrium conditions, and establish the variational inequality formulation, and solve it by using the modified algorithm. Finally, the authors illustrate the model through numerical example and discuss relationships among the price, quantity, technological progress, and satisfaction among two dynamic phases.

Modeling of Across-Chain Network Dynamic Competition for MNC in Industrial Cluster

2011 ◽  
Vol 3 (4) ◽  
pp. 30-49 ◽  
Author(s):  
Chunling Liu ◽  
Jizi Li ◽  
Guo Li ◽  
Xiaogang Cao
Keyword(s):  
Direct Investment ◽  
Technological Progress ◽  
Industrial Cluster ◽  
Industrial Clusters ◽  
Global Supply Chain ◽  
Network Dynamic ◽  
Equilibrium Conditions ◽  
Supply Chain Networks ◽  
Competitive Edge ◽  
Network Equilibrium Problem

The huge market and perfect production system in China are attracting more multi-national companies’ interest to invest in China in the form of Foreign Direct Investment (FDI). Therefore, multi-national companies are willing to integrate and optimize global supply chain networks of their own, which enable them to reduce cost and improve market response. As a result, multi-national companies usually embed into local industrial clusters through financial and technological comparative merits to sharpen their competitive edge. This paper considers the across-chain network equilibrium problem involving process of competition and melting between this new global chain and an already existing local chain. The authors model the optimizing behavior of these two chains, derive the equilibrium conditions, and establish the variational inequality formulation, and solve it by using the modified algorithm. Finally, the authors illustrate the model through numerical example and discuss relationships among the price, quantity, technological progress, and satisfaction among two dynamic phases.

scholarly journals The motives for Japanese foreign direct investment in the Southeastern United States

2019 ◽  
Vol 11 (4) ◽  
pp. 324-338
Author(s):  
Remy Magnier-Watanabe ◽  
James Hoadley
Keyword(s):  
Foreign Direct Investment ◽  
Direct Investment ◽  
National Level ◽  
State Level ◽  
Industrial Clusters ◽  
Southeastern Usa ◽  
Content Type ◽  
The Usa ◽  
Japanese Fdi ◽  
Japanese Companies

Purpose Whereas the USA is still the largest investment destination for Japanese companies, Japan also accounts as the second largest source of investment in the country. The purpose of this paper is to, empirically, examine the detailed motives of Japanese affiliates when investing in the Southeastern USA, adding to previous research at the national level. Design/methodology/approach This paper uses a qualitative approach based on the interviews of long-term Japanese investors in the manufacturing and wholesale trade industries in the Southeastern USA and applies text analysis to identify their motives. Findings The results show that Japanese firms engage in market- and efficiency-seeking foreign direct investment (FDI), and still apply a classic sequence of gradual and incremental market commitments. Market size and growth rate, reducing transaction or transportation costs, and integration within local value chains are the most important to them, whereas competition, creating an export base, lowering tax and accessing skilled labor are of little concern. Practical implications The goal of Japanese FDI in the USA is no longer to bypass tariffs but is still part of a complex industrial network of relations which drives further investment. This result can inform policy makers at the state level about the factors that can drive additional foreign investment, such as the establishment of industrial clusters. Originality/value This study offers current insights into the motives of Japanese FDI in two industries.

PFI OECD - Framework for Strong investment Policy

2015 ◽  
pp. 151-156
Author(s):  
A. Koval
Keyword(s):  
Sustainable Development ◽  
Foreign Direct Investment ◽  
Direct Investment ◽  
Comprehensive Approach ◽  
Investment Policy ◽  
Policy Framework ◽  
Investment Climate ◽  
Systematic Monitoring ◽  
Investment Tool ◽  
National Investment

The improving investment climate objective requires a comprehensive approach to the regulatory framework enhancement. Policy Framework for Investment (PFI) is a significant OECD’s investment tool which makes possible to identify the key obstacles to the inflow foreign direct investment and to determine the main measures to overcome them. Using PFI by Russian authorities would allow a systematic monitoring of the national investment policy and also take steps to improve the effectiveness of sustainable development promotion regulations.

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