Foreign direct investment and transnational corporations
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Chapter 22 in Evolutionary Spatial Economics, 2020, pp 462-496 from Edward Elgar Publishing
Abstract:
Any firm that owns, has a lasting interest in or controls assets and structures in more than one country can be called a transnational corporation (TNC). It is a wider concept than foreign direct investment (FDI) since it includes non-equity business participation in another country. FDI is often the result of decisions by TNCs. Therefore, FDI may be a relatively good proxy for the investment activities of TNCs. A note of caution has to be added, however. TNCs may control trans-border business operations by non-equity involvement such as licensing. In the case of licensing, a TNC must be assured that the goods or services provided conform to the original quality standards. Theoretical aspects (reasons, forms, impact, policy) of foreign direct investment are considered with the support of numerous examples.
Keywords: Economics and Finance; Geography (search for similar items in EconPapers)
Date: 2020
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