Abstract
In general, FDI in Asia was not hit by the Asian crisis as hard as were portfolio investments and bank lendings. Still, there is evidence that the investment behaviour of Western and particularly German multinational corporations (MNCs) in the critical period went through some changes (Kumar and Mohr, 1999). On one hand, market-oriented FDI slackened due to rapid decline of market potential. On the other hand, FDI for re-exports remained stable or even picked up because of steep depreciation of local currencies, the fall of local wages or other factor costs. In the same vein, some MNCs could cope with the crisis in terms of keeping FDI stable and continuing their corporate activity in a better way than others. They were able to compensate the negative effects of unfavourable developments by using their strategic advantages (Kumar and Mohr, 1999).KeywordsLocal ResponsivenessGlobal StrategyInternational Joint VenturisSustainable Competitive AdvantageInternational Business StudyThese keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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