When technology transfer is costly, a foreign firm and host country government may differ in their preferences over direct entry and acquisition. Government intervention could help induce the socially preferred choice

Integration into the production and marketing arrangements of multinational corporations may offer many benefits to transition economies that, after a long period of isolation, have liberalized trade and investment. The fragmentation of production offers a unique opportunity for producers in...

During the Central European countries' reintegration into the world economy, their proximity and accession to the European Union greatly affected first the flow of capital and then the flow of goods. Countries that adopted radical liberal reform and had preferential access to EU markets have...

How important to welfare and growth in developing countries are restraints on foreign providers of producer services? Limiting such services not only may limit growth but may hurt some of the very people - domestic skilled workers in such service sectors - those restraints are designed to protect

The increase in investment abroad during the past two decades may help explain the simultaneous worldwide rush toward free trade. The entry of foreign capital may change the political game, increasing openness to international trade no matter what form the foreign capital takes (whether entering...