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This doctoral dissertation comprises three chapters that
collectively examine the internationalization strategy of Spanish
Multinational Enterprises (MNEs), focusing on the proactive use of
political risk when selecting the location of their subsidiaries.
The first chapter studies the relationship between political risk
and scope of internationalization. Drawing on the Uppsala model,
the diversification and the portfolio theory, the behavior of
Spanish MNEs towards political risk is examined. The second chapter
focuses on the new members of the European Union, paying special
attention to political risk and the quality of institutions. The
results show that there still exist differences between Eastern and
Western regions when selecting the location of the FDI. Finally,
the third chapter analyses FDI flows from Southern Europe to two
nearby developing regions: North Africa and Central and Eastern
Europe. Despite FDI flows are expected to fall due to higher
political risk, those from the countries in the sample increase,
because these MNEs are trying to take advantage of their political
capabilities to obtain competitive advantages.
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