| This thesis draws on a transaction cost economic framework to investigate determinants of the overseas expansion of American food processors. It specifically focuses on further processors of two product categories: prepared meats (SIC 2013), and canned and frozen fruit and vegetable, and specialty products (SIC 203). By analyzing foreign production at the firm/product level of analysis, in contrast to the more common industry-level approach of most studies, the study affords a deeper understanding of the types of intangible assets that support foreign investment.;Using original and secondary data the study identifies global regions in which the eight largest US SIC 2013 producers and the 11 largest US SIC 203 producers engaged in 1993 in foreign production of these products. A logistic regression model is used, with the dependent variable being whether or not a given firm makes the given product in a given region. Independent variables include firm and region characteristics. Interviews with industry executives and experts add further insights and clarification.;The findings, which are consistent with a transaction cost explanation, indicate that the intangible assets associated with foreign production vary with specific product and location factors. Among the findings are that the incidence of foreign production was much higher for SIC 203 products (preserved fruit and vegetable and specialty products) than for SIC 2013 products (prepared meat products), and firm-level media spending was generally not a significant determinant of foreign production. Also, there is evidence that production and process control skills were more critical for production in lower income regions, while marketing strength and access to distribution channels were key in higher income regions. Several methodological challenges are addressed, and the thesis identifies potentially fruitful areas for further research on determinants on foreign production. |
