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The global pattern of foreign direct investment (FDI) is quite similar to the world trade pattern. In particular, intraindustry FDI between rich nations is almost as pervasive as intraindustry trade among rich nations. In the standard' MNC model (of Markusen, Venables, Brainard, and others), FDI...
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The impact of offshoring on domestic jobs is more complicated than it first appears. In the standard narrative …, offshoring production is thought to harm domestic workers by providing cheap alternative sources of labor. However, while … offshoring may directly displace domestic workers, the resulting foreign market access and lower production costs allow domestic …
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