Are US Multinationals Making Rational Offshoring Decisions? A Gravity Model Approach

Vrinda Gupta

Research Reports from Watson Wyatt Worldwide

Abstract: The development of ICT technology and infrastructure has intensified the process of globalisation in developing countries. Many developing countries provide attractive opportunities for multinationals (MNCs) in terms of cost advantages, economies of scale and multi-plant economies. Developing countries not only provide large talent pools of young workers at lower costs but they provide opportunities in terms of growing product markets. Given the extensive financial resources and technical know-how of MNCs and other positive effects on the host economy like employment and productivity growth, many developing countries compete to have these firms locate to them by offering a favourable business environment, opening up their economies to foreign investment and setting low corporate tax rates.

Pages: 23
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.watsonwyatt.com/research/resrender.asp?id=IND-6014&page=1
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to www.watsonwyatt.com:80 (No such host is known. )

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:www:resrep:14

Access Statistics for this paper

More papers in Research Reports from Watson Wyatt Worldwide
Bibliographic data for series maintained by Watson Wyatt ().