Firm localization strategy and international trade: The Algerian case

Abstract

In this work entitled Localization Strategy and international trade, we began by studying the different theories of the localization strategy, we then analyse the literature on localization according to the empirical approach and finally. The theoretical and empirical literature conducted by economists is to answer these three fundamental questions in their research: Why is a firm located in one country rather than another? How does it make its choice? What are the different ways in which foreign markets can be penetrated?

Reading the literature on this subject shows the multiplicity of analysis angles that led to the theoretical and empirical evolution of this literature and to a better understanding of the strategy of localization. To study the impact of localization on trade, we proposed empirical modelling applied to national exports and imports. We tested the relationship between exports and imports of these industries and foreign direct investment.