International Market Structuring with a Multinational Enterprise

Sukwhan Ahn () and In Soo Kan
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Sukwhan Ahn: Sookmyung Women’s University, Postal: Department of Economics, Sookmyung, Women’s University, 53-12 Chungpa-Dong 2 Ka, Yongsan-Ku, Seoul 140-742, Korea
In Soo Kan: Sookmyung Women’s Unive, Postal: Department of Economics, Sookmyung, Women’s University, 53-12 Chungpa-Dong 2 Ka, Yongsan-Ku, Seoul 140-742, Korea

Journal of Economic Integration, 1997, vol. 12, 242-258

Abstract:

This paper examines the economic rationales and conditions for the emer - gence of multinational enterprises (MNEs). Promoting production efficiency is not sufficient to justify the emergence of an MNE. With taxes in the model, tax authorities heavily tax an MNE’s economic activities, in which case an MNE becomes harder to justify on welfare grounds. This arises from the public good nature of MNEs and suggests a tax policy coordination to foster welfare improvement through the emergence of MNEs.

Keywords: International; Market; Structuring (search for similar items in EconPapers)
JEL-codes: D43 F23 H21 (search for similar items in EconPapers)
Date: 1997
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Persistent link: https://EconPapers.repec.org/RePEc:ris:integr:0049

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