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advantages. These measures clearly do not measurecosts and benefits o risk.Further confusion arises
because thcse measures have also been used as measures of ownership advantages of a fm in other
studies ( e ,e.g., Caves and Mehra ; Kogut and Sin& ). Similaroperationalization
problems wefe encountered by Dunning . In this study,weovercome these W ~cultiesby
directly measuring managerial perceptionsof different types of contractual risks that can be expected
in transactions in a particular host country.
4. Most previous studies have measured the location advantages of a h ost country using danogaphlc
indicators such as GDP, population, literacyrate, urban population,etc. to measure themarket potential
and country restrictiveness as a measure of investment risk The values of such variables are constant
across all f irms and industries for a particular host country.
5 . Our focus in this study is on market-seeking fumr and not resource-seeking fums. Hence, we do
not include the level of resource abundance in a particular host country as...
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This document was uploaded on 03/22/2014.
- Summer '14