Industrial Economics of Foreign Investment: The Case of the International Corporation

Industrial Economics of Foreign Investment: The Case of the International Corporation Industrial Economics of The Case of the International Corporation RICHARD CAVES T H E T O P I C D I S C U S S E D in this paper lies a t the intersection of two fields in economics-industrial organization and international economics, Many surveys have recently been made of the behavior and motivation of miltinational corporations, both in host countries and in home countries from which these investments originate. This paper will try to juxtapose the evidence, first with what we know about the behavior of industries within national economies, from the field of industrial organization, and then with some results derived from simple models of international trade theory. This analysis leads to some conclusions about the significance of the multinationaB corporation for the economic welfare of the nationstate, both the host country that receives the direct investment and the home country in which the parent is legally domiciled. This discussion can usefully proceed from some propositions about the theory of the firm t the industry in which the firm operates, and finally to a simple generalo equilibrium model of the economy. The theory of thejrm and conditionsfor Some peculiarities about international corporations strike the http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Journal of World Trade Kluwer Law International

Industrial Economics of Foreign Investment: The Case of the International Corporation

Journal of World Trade, Volume 5 (3) – Apr 1, 1971

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Publisher
Kluwer Law International
Copyright
Copyright © Kluwer Law International
ISSN
1011-6702
Publisher site
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Abstract

Industrial Economics of The Case of the International Corporation RICHARD CAVES T H E T O P I C D I S C U S S E D in this paper lies a t the intersection of two fields in economics-industrial organization and international economics, Many surveys have recently been made of the behavior and motivation of miltinational corporations, both in host countries and in home countries from which these investments originate. This paper will try to juxtapose the evidence, first with what we know about the behavior of industries within national economies, from the field of industrial organization, and then with some results derived from simple models of international trade theory. This analysis leads to some conclusions about the significance of the multinationaB corporation for the economic welfare of the nationstate, both the host country that receives the direct investment and the home country in which the parent is legally domiciled. This discussion can usefully proceed from some propositions about the theory of the firm t the industry in which the firm operates, and finally to a simple generalo equilibrium model of the economy. The theory of thejrm and conditionsfor Some peculiarities about international corporations strike the

Journal

Journal of World TradeKluwer Law International

Published: Apr 1, 1971

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