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Multinational-firm responses to an Asian-crisis comeback: evidence from European transnationals
Authors:Edmund R Thompson
Institution:1. Vanderbilt University;2. Yonsei University
Abstract:Abstract

Despite many predictions to the contrary, the Republic of Korea (ROK) is currently one of the countries with most pro-American attitudes. We investigate what is behind the extraordinary resilience in US popular standing in an allegedly least likely setting. Using survey data from 2002 and 2007 and a novel methodology, Classification and Regression Tree models, we test whether US standing is: (1) a matter of interests, i.e. a reward that the USA receives because it either provides security or international public goods; or (2) whether it is a matter of image, i.e. the recognition that the USA is a role model to emulate. We find that across a large number of predictors, the Korean public mostly liked the USA because they liked American ways of doing business, which gives support to the image hypothesis. Security interests played a secondary role in shaping US standing, while the provision of international public goods had no impact in the popular assessment of the USA in the ROK.
Keywords:Multinational Firms Foreign Direct Investment (FDI) Regulatory Reform Asia-PACIFIC Asian Crisis
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