This chapter is an exploration of the difficulties of testing the internalisation approach in the modern theory of the multinational enterprise (MNE). It examines the structure of the theory and attempts to cover those factors that would refute the theory. Previous attempts to test the theory are examined in the third section and the chapter concludes with the view that there is a need to sharpen up the theory to allow crucial experiments and to discriminate between alternative approaches. The paper attempts to steer a course between complacency on the one hand and nihilism on the other and between excessive generality and over concentration on detail

https://papers.ssrn.com/sol3/Delivery.cfm?abstractid=1795874

The Limits of Explanation: Testing the Internalization Theory of the Multinationial Enterprise

New theories of the multxnational enterprise: an assessment of internalization theory

Endogenous R&D and foreign direct investment in international oligopolies

This Paper focuses on two distinct facets of globalization: the decrease in the trade costs of goods and the decline of communication costs between headquarters and production facilities within firms. When the unskilled have about the same wage in the two regions, the decrease of these costs fosters the gradual agglomeration of plants in the core region accommodating the headquarters. By contrast, when the wage gap is significant, the process of integration eventually triggers the relocation of plants into the periphery. In particular, when falling communication costs drives the process of relocation, the welfare of all workers living in the core goes down whereas the welfare of those who reside in the periphery rises.

Globalization and the evolution of the supply chain: who gains and who loses ?

Modeling income inequality and openness in the framework of Kuznets curve: New evidence from China

International trade and foreign investment a simple model

Voluntary export restraints and foreign investment

A note on multinational corporations in a model of reciprocal dumping

Welfare gains from capital inflows under import quotas

This paper constructs what we call a quality-differentiation model of Chinese trade. This model captures some salient features of Chinese trade and allows us to analyze the impact of trade liberalization on wage inequality. At present, Chinese trade displays the following features: high-quality cars are imported and low-quality cars are produced and consumed domestically, for which some parts are imported. These features lead us to consider trade liberalization as two types of tariff reduction: namely, a tariff reduction on final quality-differentiated goods and a tariff reduction on intermediate goods. This study shows that the two types of tariff reduction have completely different effects on wage inequality. Moreover, the results show that welfare inequality and wage inequality change in opposite directions when the tariff on final quality-differentiated goods is reduced.

https://onlinelibrary.wiley.com/doi/pdf/10.1111/j.1467-9396.2009.00821.x

Fumio Dei

Papers

International trade and foreign investment a simple model

Voluntary export restraints and foreign investment

A note on multinational corporations in a model of reciprocal dumping

Welfare gains from capital inflows under import quotas

Product Quality, Wage Inequality, and Trade Liberalization*