Download or read book Multinational Firms and the New Trade Theory written by James R. Markusen and published by . This book was released on 1995 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt: A model is constructed in which multinational firms may arise endogenously. Multinationals exist in equilibrium when transport and tariff costs are high, incomes are high, and firm-level scale economies are important relative to plant-level scale economies. Less obvious, multinationals are more important in total economic activity when countries are more similar in incomes, relative factor endowments, and technologies. The model may thus be useful in explaining several stylized facts, including (a) the growing importance of direct investment relative to trade among the developed countries over time and (b) the greater ratio of investment to trade among the developed countries relative to this ratio for 'north-south' or 'south-south' economic relationships. The model offers predictions about the volume of trade that contrast with those of the 'new trade theory', predicting that trade at first rises and then falls as countries converge in incomes, relative endowments, and technologies. Welfare is also considered, and it is shown that direct investment makes the smaller (or high cost) country better off, but may make the larger (or low cost) country worse off.

Download or read book Multinational Firms and the Theory of International Trade written by James R. Markusen and published by MIT Press. This book was released on 2002 with total page 468 pages. Available in PDF, EPUB and Kindle. Book excerpt: A comprehensive microeconomic, general equilibrium theory and empirical analysis of multinational firms.

Download or read book Multinational Enterprises and New Trade Theory written by Salvador Barrios and published by . This book was released on 2001 with total page 46 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book Understanding Global Trade written by Elhanan Helpman and published by Harvard University Press. This book was released on 2011-04-25 with total page 233 pages. Available in PDF, EPUB and Kindle. Book excerpt: Global trade is of vital interest to citizens as well as policymakers, yet it is widely misunderstood. This compact exposition of the market forces underlying international commerce addresses both of these concerned groups, as well as the needs of students and scholars. Although it contains no equations, it is almost mathematical in its elegance, precision, and power of expression. Understanding Global Trade provides a thorough explanation of what shapes the international organization of production and distribution and the resulting trade flows. It reviews the evolution of knowledge in this field from Adam Smith to today as a process of theoretical modeling, accumulation of new empirical data, and then revision of analytical frameworks in response to evidence and changing circumstances. It explains the sources of comparative advantage and how they lead countries to specialize in making products which they then sell to other countries. While foreign trade contributes to the overall welfare of a nation, it also creates winners and losers, and Helpman describes mechanisms through which trade affects a country's income distribution. The book provides a clear and original account of the revolutions in trade theory of the 1980s and the most recent decade. It shows how scholars shifted the analysis of trade flows from the sectoral level to the business-firm level, to elucidate the growing roles of multinational corporations, offshoring, and outsourcing in the international division of labor. Helpman’s explanation of the latest research findings is essential for an understanding of world affairs.

Download or read book Multinational companies Their role in and impact on international trade and investments written by and published by GRIN Verlag. This book was released on 2021-05-04 with total page 29 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2020 in the subject Business economics - Miscellaneous, grade: 1,3, Hochschule Ostwestfalen-Lippe - University of Applied Sciences, course: International Economics, language: English, abstract: The main objective of this scientific paper is to define the role of Multinational Companies (MNC) in the international trading system. It is to be shown which effects the contrary trade policies free trade and protectionism have on international trade and the investment behaviour of MNC. The opportunities and risks of FDIs should be identified from the perspective of the MNCs and investment countries. The scientific paper thesis contains five chapters. Key terms and the relation between MNC and international trade will be defined in chapter two. At the beginning of chapter three, the Heckscher-Ohlin Model will be explained. Then theorems based on this international trade theory will be used to explain the cause and effects of international trade. In the fourth chapter, the different motives of free trade and protectionism and their effect on FDIs will be examined. The potential chances and risks of FDIs for the investment receiving countries and MNCs are then discussed. In the last chapter, the key findings of this paper are summarized. The paper ends with a conclusion and an outlook, where further significant research needs are addressed. Companies are forced to permanently increase their efficiency and effectiveness in all functional areas to stay competitive. In today ́s competition, it is almost impossible to avoid the international markets, especially for large enterprises. The strong internationalisation of the global economy over the past decades can be attributed to the increased volume of goods, services and technologies traded internationally. There has also been a strong increase in foreign direct investments (FDIs). However, the trend over the last decade has gone in the opposite direction, especially for developed countries. The General Agreement on Tariffs and Trade (GATT) is intended to provide a basis for free international trade, but an increasing number of national laws and regulations lead to a multitude of trade barriers. The growing use of customs and other instruments of protectionism, particularly by the industrialised countries, is one of the central unsolved problems of international trade. These measures aim to preserve national advantages at the expenses of the wealth of the global society.

Download or read book International Trade Modelling written by m Dagenais and published by CRC Press. This book was released on 1992-06-01 with total page 386 pages. Available in PDF, EPUB and Kindle. Book excerpt: In recent years, international trade has become a subject of increaed practical importance and also one of the most intellectually exciting parts of economics. In his introduction to this volume, Paul Krugman outlines why this is so, by analysing the original contribution of the New Trade Theory in interpreting and explaining the observed trade behaviour of the past twenty years. Then follow sections which discuss: formal tests of the New Trade Theory, Price Discrimination and Exchange Rate, as well as New Protectionism, measures of Comparative Advantages and Import Demand in industrialized and developing countries. Some chapters also use GCE models to evaluate Trade Protectionism, while others encompass External Trade within aggregate Disequilibrium Models.

Download or read book International Trade Theory written by Wei-Bin Zhang and published by Springer Science & Business Media. This book was released on 2008-04-23 with total page 415 pages. Available in PDF, EPUB and Kindle. Book excerpt: The development of international trade theory has created a wide array of different theories, concepts and results. Nevertheless, trade theory has been split between partial and conflicting representations of international e- nomic interactions. Diverse trade models have co-existed but not in a structured relationship with each other. Economic students are introduced to international economic interactions with severally incompatible theories in the same course. In order to overcome incoherence among multiple theories, we need a general theoretical framework in a unified manner to draw together all of the disparate branches of trade theory into a single - ganized system of knowledge. This book provides a powerful – but easy to operate - engine of analysis that sheds light not only on trade theory per se, but on many other dim- sions that interact with trade, including inequality, saving propensities, education, research policy, and knowledge. Building and analyzing various tractable and flexible models within a compact whole, the book helps the reader to visualize economic life as an endless succession of physical ca- tal accumulation, human capital accumulation, innovation wrought by competition, monopoly and government intervention. The book starts with the traditional static trade theories. Then, it develops dynamic models with capital and knowledge under perfect competition and/or monopolistic competition. The uniqueness of the book is about modeling trade dyn- ics.

Download or read book International Trade Theory and Policy written by Giancarlo Gandolfo and published by Springer Science & Business Media. This book was released on 2013-08-13 with total page 669 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the present text the author deals with both conventional and new approaches to trade theory and policy, treating all important research topics in international economics and clarifying their mathematical intricacies. The textbook is intended for undergraduates, graduates and researchers alike. It addresses undergraduate students with extremely clear language and illustrations, making even the most complex trade models accessible. In the appendices, graduate students and researchers will find self-contained treatments in mathematical terms. The new edition has been thoroughly revised and updated to reflect the latest research on international trade.

Download or read book Transnational Corporations and International Trade and Payments written by H. Peter Gray and published by Psychology Press. This book was released on 1993 with total page 314 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book The Essence Of International Trade Theory written by Noritsugu Nakanishi and published by World Scientific. This book was released on 2018-10-29 with total page 289 pages. Available in PDF, EPUB and Kindle. Book excerpt: This textbook aims to explain the principles in international trade theory and show how some useful trade models work. The book concentrates on two fundamental issues in international trade, that is, the 'determinants of trade patterns' and the 'welfare gains from trade' in various economic environments. Chapters 1 through 3 assume perfect competition and explore the workings of the Ricardian model, the Heckscher-Ohlin-Samuelson model, the Specific Factors model and more recent development of the Eaton-Kortum model. Chapter 4 examines various welfare criteria and their relation to the 'social utility function' and, then, proves the basic gains-from-trade proposition. Chapters 5 and 6 examine the implications of imperfect competition using a unified oligopolistic model and variations of the monopolistically competitive model. The roles of the strategic interaction among firms, the economies of scale, product differentiation, the heterogeneity of firms, and the geographic distribution of agents will be highlighted. Chapter 7 deals with some trade policy issues such as the effects of tariffs, the relation of tariffs to other policy measures, and the so-called strategic trade policies.

Download or read book The Theory of International Trade written by James R. Markusen and published by HarperCollins Publishers. This book was released on 1988 with total page 360 pages. Available in PDF, EPUB and Kindle. Book excerpt:

Download or read book International Trade and Investment Behaviour of Firms written by Murali Patibandla and published by Oxford University Press. This book was released on 2020-08-14 with total page 256 pages. Available in PDF, EPUB and Kindle. Book excerpt: In the last four decades the world has been significantly impacted by globalization and rapid technological changes. This in turn had major effects on the global economy. Several developing and socialist economies that earlier followed closed door and import substitution policies started to open up their economies to world trade and investments. Some such countries, as India, managed to achieve a degree of economic prosperity over the last few years after opening up their economy. The analyses in this book show that there are significant benefits from international trade and investment to emerging economies that possess critical-level initial conditions in technology, infrastructure, and ease of doing business, and also have friendly policies. Focusing on Indian firms, the book spans the period from the pre-reform era to the post-reform era, when the market was responding to policy reforms and global market dynamics. The reforms, it argues, resulted in positive outcomes of increased outward orientation and annual growth rates. The book also comments on the economic and institutional factors that change over time, locally as well as globally, and affect the behaviour of firms and industries.

Download or read book Market Structure and Foreign Trade written by Elhanan Helpman and published by MIT Press. This book was released on 1987-02-06 with total page 294 pages. Available in PDF, EPUB and Kindle. Book excerpt: Market Structure and Foreign Trade presents a coherent theory of trade in the presence of market structures other than perfect competition. The theory it develops explains trade patterns, especially of industrial countries, and provides an integration between trade and the role of multinational enterprises. Relating current theoretical work to the main body of trade theory, Helpman and Krugman review and restate known results and also offer entirely new material on contestable markets, oligopolies, welfare, and multinational corporations, and new insights on external economies, intermediate inputs, and trade composition.

Download or read book New Theories of the Multinational Enterprise RLE International Business written by Alan Rugman and published by Routledge. This book was released on 2013-04-02 with total page 313 pages. Available in PDF, EPUB and Kindle. Book excerpt: This book brings together the work of noted authorities in the field of multinational enterprises who explain and debate the merits of internalization theory as the new general theory of the multinational enterprise. Alternatives to internalization, such as licensing, joint ventures and other contractual arrangements are also evaluated. There are many applications to actual businesses, such as in the hotel, fish, food and banking industries. Also considered are regional office location and applications of the theory to Canada, Japan, the former Yugoslavia, the UK and USA.

Download or read book A Simple Theory of Multinational Corporations and Trade with a Trade off Between Proximity and Concentration written by S. Lael Brainard and published by . This book was released on 1993 with total page 60 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper develops a two-sector, two-country model, where firms in a differentiated products sector choose between exporting and multinational expansion as alternative modes of foreign market penetration, based on a trade-off between proximity and concentration advantages. The differentiated sector is characterized by multi-stage production, with increasing returns at the corporate level associated with some activity such as R&D, scale economies at the plant level, and a variable transport cost that rises with distance. A pure multinational equilibrium, where two-way horizontal expansion across borders completely supplants two-way trade in differentiated products, is possible even in the absence of factor proportion differences. It is more likely the greater are transport costs relative to fixed plant costs, and the greater are increasing returns at the corporate level relative to the plant level. The model also establishes conditions for a mixed equilibrium, in which national and multinational firms coexist.

Download or read book International Trade Multinational Corporations and Technology Transfer written by Janine Körner and published by GRIN Verlag. This book was released on 2011 with total page 109 pages. Available in PDF, EPUB and Kindle. Book excerpt: Diploma Thesis from the year 2007 in the subject Business economics - Trade and Distribution, grade: 2,3, Technical University of Chemnitz (Finanzwissenschaften), course: Diplomantenseminar, language: English, abstract: The discussion about the role of multinational enterprises (MNE) which are transferring their technology to undeveloped and developed countries is one of the most interesting discussions in the international trade theory with its authors in the century of globalisation. Multinational Enterprises are generating and transferring technology know-how, knowledge and innovations of products and processes over national borders to foreign countries for making research and development (R&D) in especially chosen R&D locations. The focus of the following diploma thesis is to search what kind of role multinational enterprises play in a globalised and internalized world by focussing how they make research and development in foreign countries and especially in developing countries as the third world. In the first main part of the following work it will be described what kind of role multinational enterprise play in the century of globalisation. For a better understanding it follows a description what is exactly meant by the process of internalization of the markets and R&D. It will be discussed through theoretical analysis and models how the process to an internalization of R&D function. These will be explained through different theoretical approaches as the horizontal model of James R. Markusen, the vertical model of Helpman and a model of regression which used independent and dependent variables for the analysis. At least in this chapter the specific features of a MNE will be explained by categorising multinational enterprises through different characteristics and afterward the role of MNE in the process of globalisation will be assumed for the international trade between different countries. The second part will be searching what kind of m

Download or read book International Trade written by Luis Rivera-Batiz and published by OUP Oxford. This book was released on 2003 with total page 734 pages. Available in PDF, EPUB and Kindle. Book excerpt: This title offers an integrated account of strategic trade analysis, combined with empirical evidence and new results. It addresses the need to synthesize and integrate the new advances in a field that has become a key element of policy discussions.