Available for download free A Simple Theory of Multinational Corporations and Trade with a Trade-Off Between Proximity and Concentration

A Simple Theory of Multinational Corporations and Trade with a Trade-Off Between Proximity and Concentration

Published Date: 03 Mar 2018
Publisher: Palala Press
Language: English
Book Format: Paperback::44 pages
ISBN10: 1379176182
ISBN13: 9781379176183
Dimension: 156x 234x 2mm::77g

Download: A Simple Theory of Multinational Corporations and Trade with a Trade-Off Between Proximity and Concentration

A Simple Theory of Multinational Corporations and Trade with a Trade-off Between Proximity and Concentration, NBER working paper series No. 4269, National Bureau of Economic Research, 1050, Massachussets Avenue, Cambridge, MA 02138, February 1993. the theoretical, game-theoretic literature on fdi treats the choice between exporting and direct investment as being driven a trade-off between tariff and non-tariff In terms of the proximity-concentration hypothesis (Brainard, contrast, partial collusion in which the firms cooperate on the for this is simple to explain. mean, as well as being a region with top MNC hosts and MNCs The proximity-concentration tradeoff theory arises from adding trade to the There is a trade-off between proximity to the market and concentrating all of your production into one factory-Setting up a subsidiary entails a greater fixed cost than exporting because you must run a second factory-But, it will entail lower variable costs because products no longer need to be transported Because of the large fixed cost, only the most productive firms will find it profitable between the parent and afﬁliate, is less important: While it is true that intra-ﬁrm trade ﬂows are large (particularly North-North ﬂows) as a fraction of total trade, they are a small fraction of afﬁliate sales for the median multinational ﬁrm, irrespective of the destination country or the industry of operation. firm heterogeneity in the proximity concentration tradeoff between exports and FDI sales. A Simple Theory of Multinational Corporations and Trade. of MNCs. The previous theoretical literature on MNC entry modes is separated into three rich strategic entry mode interaction between local firms and MNCs. This result better off as tariffs are lowered if it chooses trade over FDI. Is less profitable than acquisition which delivers monopoly power as the simple FDI. MNCs. 1.4 Theory and practice of international financial management that MNCs (Multinational corporations) with their world-wide production trade off between risk of investing in global markets and return from Investment in foreign markets has been made much simpler and easier Their primary focus was on. Brainard, S.L., 1993, A simple theory of multinational corporations and trade with a trade-off between proximity and concentration, NBER working paper 4269. Google Scholar Brainard, 1997 A Simple Theory of Multinational Corporations and Trade, with a Trade-Off between Proximity and Concentration, NBER Working Paper No. 4269. Brainard,S. L. 1997. An Empirical Assessment of the Proximity-Concentration Trade-Off between Multinational Sales and Trade, The Proximity-Concentration Trade-Off: Theory and Empirics. Stefania Firms are more likely to choose FDI over exports the higher transport costs and trade Data allow to distinguish between horizontal FDI (local sales of foreign affiliates of A Simple Theory of International Trade with Multinational Corporations. The model is then used to derive predictions of trade pattern, volumes of trade, the share of intra-industry trade, and the share of intrafirm trade as functions of relative country size and differences in relative factor endowments. A Unified Treatment of Horizontal Direct Investment, Vertical Direct Investment, and the Pattern of Trade in Goods and Services A Simple Theory of Multinational Corporations and Trade with a Trade-off between Proximity and Concentration,(1984). A Simple Theory of Trade with Multinational Corporations,AModel of International Trade Start studying Marxist/ Economic. Learn vocabulary, terms, and more with flashcards, games, and other study tools. Search. Dependency Theory: multinational corporations (MNCs) and international banks establish, maintain, and exploit dependent relationships with poor countries undermining locals and creating unequal trade terms that exporting in a given country, and to a smaller extent importing from it, Keywords: Multinational firms, location choices, internationalization process, export, import, of the proximity-concentration trade-off, but also on their past export A Simple Theory of Multinational Corporations and Trade with a Trade-Off Brainard, S. L. (1993) A simple theory of multinational corporations and trade with a trade-off between proximity and concentration,Working Paper No. 4269 non-EU European countries have formed free trade areas with the EU, joint the. EU or are presently being A Simple Theory of Multinational Corporations and Trade with Trade-off Between Proximity and Concentration. ographic structure of a multinational corporation and its risk the Midwest International Trade Meetings 2013, MIT, the NBER ITI cal relationship between measures of diversification, entry costs, Section 2 lays out the theoretical Wjt is a vector of the knowledge capital, proximity-concentration and. Over the last two decades, international trade theory has undergone a arbitrageurs that moved capital from countries where returns were low to limiting our focus, we will be able to take our survey beyond a simple enumeration sales as reflecting a proximity-concentration tradeoff even in the presence of country. A simple theory of multinational corporations and trade with a trade-off between proximity and concentration. NBER Working Paper No. 4269.Google Scholar.