Export and Reverse Investment: Strategic Implications for Newly Industrialized Countries

Abstract

Multinational companies in a newly industrialized countries face a dilemma of whether and when they should engage in U.S. manufacturing. This study investigates consumer evaluations of product quality and purchase intent of two electronic products currently imported into the U.S. from a company in a newly industrialized country and one electronic product currently not manufactured by the same company. The results suggest that reverse investment in the U.S. may be a viable strategic alternative for companies in newly industrialized country traditionally engaged only in export activities if they pay careful attention to price and retail distribution in the U.S.