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Multinational Firms and the Theory of International Trade

James R. Markusen

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ISBN 10: 0262633078 / ISBN 13: 9780262633079
Published by MIT Press Ltd
New Condition: New Soft cover
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Title: Multinational Firms and the Theory of ...

Publisher: MIT Press Ltd

Binding: Paperback / softback

Book Condition: New

About this title

Synopsis:

Despite the great importance of multinational firms in international economics, theoretical and empirical research on these firms has generally been conducted separately from that on international trade. In this book, James Markusen provides a comprehensive integration of the two fields. Drawing on twenty years of research, he focuses on the interaction of scale economies, trade costs, factor endowments, and imperfect competition. He analyzes decisions about whether to build or acquire a foreign plant separately from decisions about where to raise the financing. Markusen begins with the simplest possible partial equilibrium models and works systematically toward a full-fledged general equilibrium model with both horizontal and vertical foreign direct investment. He offers empirical tests of hypotheses derived from the theoretical models. The notation is unified throughout, distinctions between models are explained with thoroughly explained derivations, and numerous graphs support the analysis.

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[T]he book will be of tremendous interest to professionals in the field...

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