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Impact of Channel Co-opetition and Taxes on a Multinational Firm’s Resilient Local Production Decision

DATE June 30, 2024
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Title of the Report: Impact of Channel Co-opetition and Taxes on a Multinational Firm’s Resilient Local Production Decision

Time: July 10, 2024, 10:00-11:30 AM

Venue: Room B208, School of Economics and Management

Speaker: Professor Xiaohang Yue

Host: Professor Jianjun Wang

Abstract:

In this paper, we focus on the decision of a multinational firm (MNF) on production strategies under the influence of national culture. The national culture of a country can result in a high preference for openness or self-reliance, and such preferences change over time. Related government policies have a strong impact on the MNF’s decision whether to produce overseas and sell products in the domestic market or produce locally for domestic selling. We find that when the factory establishment variable cost is low and the fixed cost is in a moderate range, the MNF’s preference over production strategies switches from local production to overseas production and then back to local production, as the channel substitutability increases.

Speaker Biography:

Dr. Xiaohang Yue is a tenured professor at the Lubar School of Business, University of Wisconsin-Milwaukee, USA. He is a member of the American Supply Chain Management Association, INFORMS, and the Production and Operations Management Society. His primary research areas are supply chain and logistics management, production and market management, and industrial manufacturing systems management. He has published multiple papers in international journals such as OR, ISR, POM, NRL, and JBR. Currently, he serves as a senior associate editor for Production and Operations Management, a department editor for IEEE Transactions on Engineering Management, and a guest editorial board member for several journals including IJPR, TRE, IJPE, ANOR, and IEEE Transactions on Industrial Informatics.

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