An Application of Experiential Learning in International Trade and Foreign Direct Investment

Authors

  • Chaim M. Ehrman

Abstract

Evidence on the value of experiential learning is mixed. In the area of international trade and investment, it is possible to isolate an effective instrument that will show the effects of experiential learning. The propensity to export and invest in manufacturing abroad is influenced by the degree of experiential learning of the firm’s decision makers in business and trade abroad. Experiential learning in this context of foreign trade is defined as top managers who have lived abroad and conducted business abroad for at least one year. Traditional learning is defined as transfer of knowledge of foreign trade through textbooks concerning the cultural habits and methods of doing business abroad without ever living for a significant period of time abroad.

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Published

1982-03-13