Down with MNE-centric theories! Market entry and expansion as the bundling of MNE and local assets

Both Anderson and Gatignon and the Uppsala internationalization model see the initial mode of foreign market entry and subsequent modes of operation as unilaterally determined by multinational enterprises (MNEs) arbitraging control and risk and increasing their commitment as they gain experience in the target market. OLI and internalization models do recognize that foreign market entry requires the bundling of MNE and complementary local assets, which they call location or country-specific advantages, but implicitly assume that those assets are freely accessible to MNEs. In contrast to both of these MNE-centric views, I explicitly consider the transactional characteristics of complementary local assets and model foreign market entry as the optimal assignment of equity between their owners and MNEs. By looking at the relative efficiency of the different markets in which MNE and complementary local assets are traded, and at how these two categories of assets match, I am able to predict whether equity will be held by MNEs or by local firms, or shared between them, and whether MNEs will enter through greenfields, brownfields, or acquisitions. The bundling model I propose has interesting implications for the evolution of the MNE footprint in host countries, and for the reasons behind the emergence of Dragon MNEs.

Particle simulation study of electron heating by counter-streaming ion beams ahead of supernova remnant shocks

The growth and saturation of Buneman-type instabilities is examined with a particle-in-cell (PIC) simulation for parameters that are representative for the foreshock region of fast supernova remnant shocks. A dense ion beam and the electrons correspond to the upstream plasma and a fast ion beam to the shock-reflected ions. The purpose of the 2D simulation is to identify the nonlinear saturation mechanisms, the electron heating and potential secondary instabilities that arise from anisotropic electron heating and result in the growth of magnetic fields. We confirm that the instabilities between both ion beams and the electrons saturate by the formation of phase space holes by the beam-aligned modes. The slower oblique modes accelerate some electrons, but they cannot heat up the electrons significantly before they are trapped by the faster beam-aligned modes. Two circular electron velocity distributions develop, which are centred around the velocity of each ion beam. They develop due to the scattering of the electrons by the electrostatic wave potentials. The growth of magnetic fields is observed, but their amplitude remains low.