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51. Les entreprises françaises et allemandes en Chine : des pratiques de management contrastées dans un contexte en mutation

Author:
Jean-Louis Rocca, Rémi Bourguignon, Solène Hazouard, and Martine Le Boulaire
Publication Date:
09-2011
Content Type:
Special Report
Institution:
Centre d'Etudes et de Recherches Internationales (CERI)
Abstract:
Ce rapport constitue le troisième volet1 d’une série d’études consacrées à l’implantation des entreprises occidentales en Chine, un pays qui représente un environnement des affaires atypique, entre exploit et danger. Son rythme de croissance effréné et ses équilibres sociaux, son contexte politique et social apparaissent comme autant de défis. Pour les entreprises occidentales, notamment, il n’est pas possible de s’en remettre à un transfert pur et simple des pratiques managériales. Le présent rapport s’efforce d’enrichir et de compléter les observations antérieures par la prise en compte d’une dimension comparative. Cinq nouvelles entreprises seront spécifiquement étudiées, deux d’origine française et trois d’origine allemande, portant ainsi notre panel global à près de trente cas d’entreprises.
Topic:
Democratization, Globalization, Political Economy, Social Policy, and Multinational Corporations
Political Geography:
China, Asia, France, and Germany

52. Exports Versus Multinational Production Under Nominal Uncertainty

Author:
Logan T. Lewis
Publication Date:
12-2011
Content Type:
Working Paper
Institution:
Board of Governors of the Federal Reserve System
Abstract:
This paper examines how nominal uncertainty affects the choice firms face to serve a foreign market through exports or to produce abroad as a multinational. I develop a two-country, stochastic general equilibrium model in which firms make production and pricing decisions in advance, and I consider its implications on this relative choice. For foreign firms, both exports and multinational production are priced in the destination currency, and this uncertainty has no effect on the relative decision. In the data, U.S. firms set nearly all of their export prices in dollars. Therefore, home firms price exports in their own currency in the model. Home exporters gain an advantage over home multinationals: during a foreign contraction, the foreign exchange rate appreciates, causing exported goods from the home country to be relatively cheaper. This pricing advantage affects exporters non-linearly through demand, which translates to convex profits. As foreign volatility rises, the model implies that the home country should serve the foreign country relatively more through exports. I take this implication to bilateral U.S. data, using inflation volatility as a proxy for nominal volatility. Using sectoral data on sales by majority-owned foreign affiliates matched with U.S. exports, I find that higher inflation volatility is associated with a significantly lower ratio of multinational production to total foreign sales.
Topic:
International Cooperation, Multinational Corporations, Exchange Rate Policy, and Exports
Political Geography:
North America and United States of America