International Business Faculty Papers
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Browsing International Business Faculty Papers by Author "Broaden, Charlotte"
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Item Foreign direct investment under uncertainty : an options pricing strategy(Southern New Hampshire University, 1999-10-19) Broaden, CharlotteItem Foundations of foreign direct investment(Southern New Hampshire University, 1999-09-29) Broaden, CharlotteTo adequately understand foreign direct investment, one must trace the origins of international trade beginning with comparative advantage theory, which views trade from the standpoint of perfect competition, to the new classical theories that focus on imperfect markets. The debates that are raised in these theories touch on many issues, however, central to the underlying theme in all of these theories are the issues of efficiency and equity as they impact both the home and host countries. Understanding the theories in and of themselves is not enough to explain the concept of foreign direct investment. We need an instrument to tie the two together and that instrument or more preferably, institution, is the multinational corporation (MNC). The literature is inconclusive in providing a precise definition of the MNC. A generally accepted theorem is that MNC’s are composed of a corporate structure where operations are in two or more countries on such a scale that growth and success depend on more than one nation, and where decisions are made on the basis of global alternatives (Parry 1973). For the basis of this paper, we shall also accept this premise. This paper will examine how international trade theory impacts foreign direct investment decisions. We will investigate the idea of a MNC moving from the notion of perfect competition to the concept of dealing with market imperfections as well as follow the evolution to the "new paradigm" of international trade.Item Measuring the impact of globalization : an analysis of the risk and return of multinational firms(Southern New Hampshire University, 2001-02-28) Broaden, Charlotte; Samii, MassoodThere have been several debates in the literature over the issue of multinational firms and their impact on profitability and risk. Previous literature suggests that multinational firms decrease their systematic risk owing to the diversification benefit of having cash flows in different countries. More recent empirical evidence has surfaced suggesting the contrary in that multinationals may increase their risk due to an increase in the standard deviation of cash flows from such additional risk factors as political risk, exchange rate risk, and information asymmetry. In conjunction with lower risk, it has been posited that firms have higher leverage. Empirical studies on profitability have shown similar rates of return for both domestic and international firms. Through the use of pooled regression analysis this paper finds support for the hypothesis that multinational firms experience lower debt, and lower profitability.Item Mentoring African American expatriates : providing the bridge to success abroad(Clute Institute for Academic Research, 2009) Crawley, Daria C.; Broaden, Charlotte; Motley, Darlene Y.Employment predictions continue to forecast increasing racial diversity in the American workforce as firms face global competition and strive to grasp the challenges of a global business landscape. As American multinational corporations use expatriate assignments; supplemented by flexipatriates and inpatriates to meet customer preferences in the global marketplace, growing racial diversity may generate more expatriates of color. Global human resource management research has focused on issues such as adjustment and cross-cultural development and recently mentoring as critical factors for expatriate success. A growing body of mentoring research details the career experiences of employees with diverse backgrounds, yet few studies center on the experiences of the African American expatriate. This article aims to examine African Americans mentoring opportunities in a global environment, with a focus on understanding the role mentoring plays for this particular population group. This work is intended to contribute to the increasing literature on global mentoring and will help to influence the thinking of multinational corporations' response to the increasing diversity of their global workforce.