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Diversified Boundaries of the Firm

Discussion Papers

No.338

March 2012

ABSTRACT

We analyze diversification of boundaries of local firms in developing countries under the economic globalization. The globalization has an aspect of homogenization of the world economy, but also has another aspect of diversification through international economic activities. Focusing on boundary-level of the firm, this article shows that the diversification from a comparison with boundaries of foreign firms in developed countries is brought by a disadvantage of technology deficit and a home advantage as local firms.


Keywords: diversification, technology gaps, home advantage, boundaries of firms
JEL classification: D21,O12

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