Benefits and Costs for the Host Country

H. Peter Gray

Chapter Chapter IV in The Economics of Business Investment Abroad, 1972, pp 109-139 from Palgrave Macmillan

Abstract: Abstract The final section of Chapter II hypothesised that the benefit to the host nation from the local establishment of a foreign subsidiary enterprise was likely to vary both in magnitude and in the kind of industry that was attracted according to the level of income of the host country. More precisely, it was argued that the difference between the income levels of the host and the investing nations would influence the volume, pattern and profitability of the investments as well as the benefits derived by the host. Since it may reasonably be assumed that the investing nations are developed and technologically-sophisticated economies, the question of the benefits and costs of the host nation should consider ‘rich’ countries and ‘poor’ countries separately.

Keywords: Direct Foreign Investment; Host Country; Foreign Investment; Host Nation; Develop Nation (search for similar items in EconPapers)
Date: 1972
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DOI: 10.1007/978-1-349-01687-7_4

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