This paper seeks to review some of these happenings, most of which come into prominence between the two editions of the publication of Richard Caves, Multinational Enterprise and Economic Analysis (1982 and 1996).
To his credit, (Richard Caves acknowledges many of these in his second (1996) edition.
But, since much of his analysis relates to the work of scholars in the 1980s,2 his chapter on the international allocation of economic activity (Chapter 2) does not fully embrace the events and academic research of the last decade or so.
It is these which will be the main concern of this contribution. The paper will proceed in the following way. First it will briefly describe the changing global economic scenario in which MNE activity has been conducted since the mid-1970s, and also the various strands of intellectual thought which have sought to explain this.
Second, it will examine how the microlocational determinants of international production have changed; and how the location portfolio of MNEs may itself help promote their dynamic competitive advantages.
Third, it will consider how, from a more macroeconomic standpoint, the emergence of the MNE as a leading vehicle of cross-border transactions has affected our thinking about the determinants of trade and other non-MNE related transactions.
This paper seeks to review some of these happenings, most of which come into prominence between the two editions of the publication of Richard Caves, Multinational Enterprise and Economic Analysis (1982 and 1996). To his credit, (Richard Caves acknowledges many of these in his second (1996) edition. But, since much of his analysis relates to the work of scholars in the 1980s,2 his chapter on the international allocation of economic activity (Chapter 2) does not fully embrace the events and academic research of the last decade or so. It is these which will be the main concern of this contribution. The paper will proceed in the following way. First it will briefly describe the changing global economic scenario in which MNE activity has been conducted since the mid-1970s, and also the various strands of intellectual thought which have sought to explain this.Second, it will examine how the microlocational determinants of international production have changed; and how the location portfolio of MNEs may itself help promote their dynamic competitive advantages. Third, it will consider how, from a more macroeconomic standpoint, the emergence of the MNE as a leading vehicle of cross-border transactions has affected our thinking about the determinants of trade and other non-MNE related transactions.
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