 Trade, Location of Economic Activity and the MNE: A Search for an Eclectic ApproachJohn H. Dunning Chapter 12 in The International Allocation of Economic Activity, 1977, pp 395-418 from Palgrave Macmillan Abstract: Abstract The main task of this paper is to discuss ways in which production financed by foreign direct investment, that is, that undertaken by multinational enterprises (MNEs), has affected our thinking about the international allocation of resources and the exchange of goods and services between countries. The analysis takes, as its starting point, the growing convergence between the theories of international trade and production, and argues the case for an integrated approach to international economic involvement, based both on the location-specific endowments of countries and the ownership-specific endowments of enterprises. In pursuing this approach, the paper sets out a systemic explanation of the foreign activities of enterprises, in terms of their ability to internalise markets to their advantage. It concludes with a brief examination of some of the effects which the MNE is allegedly having on the spatial allocation of resources, and on the patterns of trade between countries. Keywords: International Trade; Home Country; Direct Investment; Foreign Market; Vertical Integration (search for similar items in EconPapers) There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:pal:palchp:978-1-349-03196-2_38 Ordering information: This item can be ordered from DOI: 10.1007/978-1-349-03196-2_38 Access Statistics for this chapter More chapters in Palgrave Macmillan Books from Palgrave Macmillan |
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