We examine which tax allocation system leads to more severe distortions with respect to locational investment decisions. We consider separate accounting (SA) and formula apportionment (FA). The effects of both systems have been hotly debated in Europe in the past years. The reason is that the EU...

This examination of multinational location strategy focuses on the areas of economics, management and policy. It discusses issues such as regionalism and international trade; location patterns, local content rules and foreign direct investment; and, plant location in Eastern European countries