Benefits and concerns

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Chapter 26 in Evolutionary Spatial Economics, 2020, pp 552-558 from Edward Elgar Publishing

Abstract: Estimates of potential gains from operations of transnational corporations (TNCs) were usually based on the classical assumption that the set of traded goods is both complete and fixed. In such a case, the gains from trade and foreign direct investment (FDI) appear to be quite small. Prices in the economy could be changed by government (tariff) intervention, so the quantity of produced and traded goods would change, but the list of the manufactured and traded goods would remain the same. FDI potentially increase the list of produced goods and services, as well as their quality. Nonetheless, the perils are in the potentially harmful behaviour by TNCs. These are considered, together with policies to counter such behaviour.

Keywords: Economics and Finance; Geography (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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