A Risk-Return Model for Multiregion and Multiproduct Diversification of the Firm
- 1 January 1987
- journal article
- research article
- Published by SAGE Publications in Environment and Planning A: Economy and Space
- Vol. 19 (1) , 81-92
- https://doi.org/10.1068/a190081
Abstract
The purpose of this paper is to demonstrate that the integration of locational considerations into product-diversification planning has the potential of supplying gains to the firm by providing hedges against both product-portfolio and location-portfolio risk. An efficient diversification frontier for region – product strategic planning is generated from hypothetical data for purposes of illustration. Results of the analysis are in agreement with Wahlroos's theory of the diversification of the firm.Keywords
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