A firms multinational experience is s measured in

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Unformatted text preview: ence is s measured in this studysing three items: percentof total earnings attributed u 12 JOURNAL OF INTERNATIONAL BUSINESS STUDIES, FIRST QUARTER 1992 to foreign operations, perceived degree of multinationality, and perceived readiness to handle international business. The reliability coefficient for this measure was foundto be 0.8 1. Location Advantages Market Potential. The indicators of this measure include perceived managerial assessment of market size, growth potential, acceptability of leasing as a financial tool in the host country, host govemment’s attitudes toward foreign fims in general and the leasing industry in particular. The last two is critically items are importantbecausetheleasingindustry’spotential dependent on the host government’s laws (accounting procedures and tax laws) that make leasing attractive a financing tool. Inter-item correlations as indicated good correlation among the five items. The reliability coefficient for this measure was found to be 0.81. Investment Risk. Inves...
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