Foreign Firms In China Research Articles

Cooperative Strategies between Foreign Firms in an Overseas Country

In this paper, we study the cooperative strategies between two firms in an overseas country. In part 1, we examine the circumstances under which foreign firms would cooperate with another foreign firm in a third country market. Drawing upon existing literature, we develop and test a set of hypotheses using a longitudinal data set from China. The types of cooperative arrangements include all the major modes of operation. In part 2, we further investigate what types of operation and level of control exist among the cooperative arrangements between two foreign firms in China. We used a sample of 483 cooperative arrangements between two firms from Hong Kong, the U.S., Japan, Germany, or Britain. This study offers interesting insight as to why foreign firms form cooperative arrangements in an overseas country and what types of cooperative arrangements these firms prefer.

The Determinants of Industrial Research and Development: A Study of the Chemical, Drug, and Petroleum Industries

Economists have recently grown interested in doing research on research or R & D, as it is called in industrial circles. Several studies have tested Schumpeter's hoary hypothesis that large firms are responsible for most industrial inventive activity.1 Few of these studies, however, suggest why this hypothesis is apparently valid for some industries and not for others. And statistical studies going beyond this question, to try to relate R & D expenditures to firm profit expectations and the availability of funds as in other investment decisions, are rare (Mansfield, 1964; Mueller, 1967). This paper reports the results of an empirical investigation into the determinants of research expenditures in three industries-drugs, chemicals, and petroleum refining. These industries have three advantages for such a study: (1) they are among the leaders in total R & D expenditures; (2) most activity is concentrated in an appreciable number of large or moderately large firms; and (3) government support of research work is relatively small, so that decisions are more closely analogous to ordinary