Multinational companies. Their role in and impact on international trade and investments

Multinational companies. Their role in and impact on international trade and investments
Author:
Publisher: GRIN Verlag
Total Pages: 29
Release: 2021-05-04
Genre: Business & Economics
ISBN: 3346399974

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.

Global Goliaths

Global Goliaths
Author: James R. Hines
Publisher: Brookings Institution Press
Total Pages: 585
Release: 2021-04-20
Genre: Business & Economics
ISBN: 0815738560

How multinationals contribute, or don't, to global prosperity Globalization and multinational corporations have long seemed partners in the enterprise of economic growth: globalization-led prosperity was the goal, and giant corporations spanning the globe would help achieve it. In recent years, however, the notion that all economies, both developed and developing, can prosper from globalization has been called into question by political figures and has fueled a populist backlash around the world against globalization and the corporations that made it possible. In an effort to elevate the sometimes contentious public debate over the conduct and operation of multinational corporations, this edited volume examines key questions about their role, both in their home countries and in the rest of the world where they do business. Is their multinational nature an essential driver of their profits? Do U.S. and European multinationals contribute to home country employment? Do multinational firms exploit foreign workers? How do multinationals influence foreign policy? How will the rise of the digital economy and digital trade in services affect multinationals? In addressing these and similar questions, the book also examines the role that multinational corporations play in the outcomes that policymakers care about most: economic growth, jobs, inequality, and tax fairness.

Foreign Direct Investment and the Multinational Enterprise

Foreign Direct Investment and the Multinational Enterprise
Author: Steven Brakman
Publisher: MIT Press
Total Pages: 301
Release: 2008
Genre: International business enterprises
ISBN: 0262026457

The multinational firm and its main vehicle, foreign direct investment, are key forces in economic globalization. Their importance to the world economy can be seen in the fact that since 1990 foreign direct investment has grown more rapidly than the world GDP and world trade. Despite this, the causes and consequences of multinational firm activity are little understood and until recently relatively unexamined in the theoretical literature. This CESifo volume fills this gap, examining the multinational enterprise (MNE) and foreign direct investment (FDI) from both theoretical and empirical perspectives. In the theoretical chapters, leading scholars take a wide range of modern analytical approaches--from new growth and trade theories to new economic geography, industrial organization, and game theory. Taking current theoretical work on MNE and FDI as a starting point and aiming to extend the existing theoretical framework, the contributors consider such topics as investment liberalization and firm location, tax competition, and welfare consequences of FDI and outsourcing. The empirical chapters test several of the key hypotheses of recent theoretical work on MNE and FDI, examining topics that include productivity effects on Italian MNEs, the different effects of outsourcing in Austria and Poland, location decisions of MNEs in the European Union, and other topics. ContributorsOscar Amerighi, Bruce A. Blonigen, Steven Brakman, Davide Castellani, Ronald B. Davies, Alan V. Deardorff, Fabrice Defever, Harry Garretsen, Anders N. Hoffman, Andzelika Lorentowicz, James R. Markusen, Charles van Marrewijk, Dalia Marin, James R. Marukusen, Alireza Naghavi, Helen T. Naughton, Giorgio Barba Navaretti, J. Peter Neary, Gianmarco Ottaviano, Alexander Raubold, Glen R. WaddellSteven Brakman is Professor of Globalization in the Faculty of Economics at the University of Groningen. Harry Garretsen is Professor of International Economics at the Utrecht School of Economics, Utrecht University.

Multinational Firms in the World Economy

Multinational Firms in the World Economy
Author: Giorgio Barba Navaretti
Publisher: Princeton University Press
Total Pages:
Release: 2020-06-16
Genre: Business & Economics
ISBN: 0691214271

Depending on one's point of view, multinational enterprises are either the heroes or the villains of the globalized economy. Governments compete fiercely for foreign direct investment by such companies, but complain when firms go global and move their activities elsewhere. Multinationals are seen by some as threats to national identities and wealth and are accused of riding roughshod over national laws and of exploiting cheap labor. However, the debate on these companies and foreign direct investment is rarely grounded on sound economic arguments. This book brings clarity to the debate. With the contribution of other leading experts, Giorgio Barba Navaretti and Anthony Venables assess the determinants of multinationals' actions, investigating why their activity has expanded so rapidly, and why some countries have seen more such activity than others. They analyze their effects on countries that are recipients of inward investments, and on those countries that see multinational firms moving jobs abroad. The arguments are made using modern advances in economic analysis, a case study, and by drawing on the extensive empirical literature that assesses the determinants and consequences of activity by multinationals. The treatment is rigorous, yet accessible to all readers with a background in economics, whether students or professionals. Drawing out policy implications, the authors conclude that multinational enterprises are generally a force for the promotion of prosperity in the world economy.

Multinationals in the New Europe and Global Trade

Multinationals in the New Europe and Global Trade
Author: Michael W. Klein
Publisher: Springer Science & Business Media
Total Pages: 290
Release: 2012-12-06
Genre: Business & Economics
ISBN: 3642769918

After a decade of Eurosclerosis the EC is moving with renewed economic growth and increasing multinational investment toward a single European market under the heading "Project 1992". The creation of a single EC market creates dynamic adjustment needs and opens up new opportunities for international business in a period of intensified global competition and dramatic politico-economic changes. Since the mid-1980s Eastern Europe is undergoing a radical shift towards market-based economic systems -a difficult and fragile development so far which is further complicated by economic and political unification of Germany in central Europe. After the era of British and, later, U. S. leadership in multinational investment German and Japanese multinational companies are becoming more influential players worldwide. Firms from Germany playa special role because German unification of 1990 implies a bigger home market, but also the diversion of total investment activities towards the greater German home market. While the political divide of Europe has ceased to exist, the economic division is becoming more apparent, and it could indeed transitorily increase because the EC 1992 project primarily generates growth impulses in Western Europe, while systemic transformations in Eastern Europe reduce output growth in the short term.

Multinational Corporations

Multinational Corporations
Author: Nasrollah Saifpour Fatemi
Publisher: Associated University Presse
Total Pages: 344
Release: 1976
Genre: Business & Economics
ISBN: 9780845318799

Monograph on the role of USA based multinational enterprise and influence on international relations - covers historical origins, social role, labour relations, technology transfer, taxation, ethics, balance of payments, international organization and mechanisms for control and regulation, etc. Bibliography pp. 322 to 326, references and statistical tables.

Opportunities and Challenges for Multinational Enterprises and Foreign Direct Investment in the Belt and Road Initiative

Opportunities and Challenges for Multinational Enterprises and Foreign Direct Investment in the Belt and Road Initiative
Author: Bhuiyan, Miraj Ahmed
Publisher: IGI Global
Total Pages: 323
Release: 2022-06-24
Genre: Business & Economics
ISBN: 1799880230

The Belt and Road Initiative (BRI) is establishing significant connectivity networks, including a complex network of aviation e-services and trade network systems. It has promoted economic and financial development in regions covered by the BRI in terms of infrastructure construction and interconnection and attracted large foreign direct investment flows. At the bottom of the escalation of the China-US trade dispute is a more fundamental shift where China has become the US’s strategic competitor, and political-economic tensions have continued to climb. Opportunities and Challenges for Multinational Enterprises and Foreign Direct Investment in the Belt and Road Initiative analyzes the opportunities and challenges of multinational enterprises (MNEs) and cross-border foreign investments transactions. This valuable reference adopts an economic and international business perspective to address these issues and presents novel and state-of-the-art research insights into the role of MNEs and their influence on the Silk Road Economic Belt. Covering topics such as economic determinants, foreign direct investment promotion policies, and trade gravity model, this premier reference source is an excellent resource for business leaders and CEOs, policymakers, geopolitical experts, politicians, government officials, sociologists, libraries, students and educators of higher education, researchers, and academicians.

International Trade - Multinational Corporations and Technology Transfer

International Trade - Multinational Corporations and Technology Transfer
Author: Janine Körner
Publisher: GRIN Verlag
Total Pages: 109
Release: 2011
Genre: Business & Economics
ISBN: 3640812387

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

Foreign Direct Investment and the Global Economy

Foreign Direct Investment and the Global Economy
Author: Jeremy Alden
Publisher: Taylor & Francis
Total Pages: 331
Release: 2024-01-26
Genre: Architecture
ISBN: 1136038728

With the emergence of a truly global marketplace, regions now face far greater competition in attracting outside investment, and multinational companies have to consider local conditions on many levels before choosing to invest. Foreign Direct Investment and the Global Economy looks at the pattern of FDI and its impacts on the global, regional (trade block), national and sub-national scales. The contributors describe the much discussed global-local interlay apparent in the operations of multinational companies and their involvement with 'regulatory' institutions at different levels, from the global to the local.