General-Equilibrium Approaches to the Multinational Firm : A Review of Theory and Evidence

@inproceedings{Markusen2001GeneralEquilibriumAT,
  title={General-Equilibrium Approaches to the Multinational Firm : A Review of Theory and Evidence},
  author={James R. Markusen},
  year={2001}
}
  • James R. Markusen
  • Published 2001
Beginning in the early 1980s, theoretical analyses have incorporated the multinational firm into the microeconomic, general-equilibrium theory of international trade. Recent advances indicate how vertical and horizontal multinationals arise endogenously as determined by country characteristics, including relative size and relative endowment differences, and trade and investment costs. Results also characterize the relationship between foreign affiliate production and international trade in… CONTINUE READING