To serve foreign markets, firms can either export or set up a local subsidiary through horizontal Foreign Direct Investment (FDI). The conventional proximity-concentration theory suggests that FDI substitutes for trade if distance between countries is large, while exports become more important...

Questioning 'globalization' -- Global shift : the changing global economic map -- Technological change : 'gales of creative destruction' -- Transnational corporations : the primary 'movers and shapers' of the global economy -- 'Webs of enterprise' : the geography of transnational production...