The dissertation in the field of economic geography by Kristiina Korhonen, Lic.Sc. (Econ.), ”Foreign direct investment in a changing political environment: Finnish investment decisions in South Korea” will be publicly examined at the Helsinki School of Economics on Monday, December 19th, 2005. The public examination starts at 12:00 in the Stora Enso Hall of the Chydenia Building. The opponent is Professor Sam-Ock Park, PhD (Seoul National University), and the custos is Professor Jarmo Eronen, PhD (Helsinki School of Economics).
This dissertation contributes to an understanding of foreign direct investment (FDI) in a changing political environment. Although the theoretical framework for the study is the geography of enterprise approach, it has been augmented with theories from the fields of strategic management, international business, and political economy. The research problem of the study asks how transnational corporations (TNCs) perceive and react to the changes in the political environment of the host country.
The literature has basically studied the spatial aspects of FDI separately from the growth and performance of firms, while the present study aims to combine them. Korhonen has modified the strategy-performance model to identify the relevant factors with an impact on the investment decisions and performance of the TNCs, including the location conditions in the host country. The results show that firms interpret the location conditions into a special set of location factors, which are crucial from their strategy perspective.
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