Chapter 15 multinationals and migration
This presentation is the property of its rightful owner.
Sponsored Links
1 / 44

Chapter 15 Multinationals and Migration PowerPoint PPT Presentation


  • 103 Views
  • Uploaded on
  • Presentation posted in: General

Chapter 15 Multinationals and Migration. a. Multinationals. Link to syllabus. FDI – Foreign Direct Investment (p. 345).

Download Presentation

Chapter 15 Multinationals and Migration

An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -

Presentation Transcript


Chapter 15 multinationals and migration

Chapter 15 Multinationals and Migration

a. Multinationals

Link to syllabus


Fdi foreign direct investment p 345

FDI – Foreign Direct Investment (p. 345)

  • Flow definition: Flow of funding provided by investors (usually firms) to establish or acquire foreign companies or to expand or finance existing foreign companies that the investors own.

  • Key is sufficient ownership to control or influence the management of the foreign company.

  • Stock definition: Total value of existing funding (equity and debt) of foreign companies that has been provided by investors that own these foreign companies.

Multinational (or Transnational) Enterprise (or Corporation)

A firm that owns and controls operations in more than one country

Portfolio vs. Direct Investment


Figure 15 1 p 348 major stocks of outward fdi 2008

Figure 15.1 p. 348. Major Stocks of (Outward) FDI, 2008


Us international investments gdp

US International Investments/GDP

Data source: US DoC


Why do mnes exist pp 349 50

Why do MNEs Exist? (pp. 349-50)

  • First, acknowledge that there are inherent disadvantages of operating a foreign affiliate competing against local firms.

  • Firm-specific advantages of the MNE, especially intangible assets. (a.k.a. organizational advantages).

  • Location factors based on resource costs and availability, customer demand, government policies, and other considerations.

  • Internalization advantages in using these assets.

  • Oligopolistic rivalry that uses FDI in the firms’ strategies for competing.

Sometimes referred to as international industrial organization

Major proponent of this perspective is John Dunning – ‘eclectic theory.’

and the OLI theory.


Implications of the dunning oli model

Implications of the Dunning/OLI Model

Foreign direct investment is often a ‘good thing’ – although we must

remember that it will have effects on income distribution, as well as

on output and employment.

There are several important examples when FDI does not increase

national welfare, such as when it is attracted by tariffs or subsidies,

or political power.

FDI will probably be associated with higher profits, import and/or

export propensities, higher wages, more capital intensity.

One should view FDI as part of a dynamic world (product cycle)

FDI will vary by productive sector

OECD countries have lots of both IFDI and OFDI

For many countries, FI and FDI have greatly different values.


Table illustrating transfer prices pugel p 356

Table illustrating transfer prices (Pugel, p. 356)


Oli in turkey

OLI in Turkey

Journal of Management Development Vol. 27, #7. 2008


Exporting jobs and sales

Exporting Jobs and Sales

More sales from US subsidiaries overseas, than from US firms in the USA.

Source: NYT April 19, 2004


Outsourcing by toyota

Outsourcing by Toyota

Source: NYT Oct 21, 2003


Narula dunning investment development path

Narula/Dunning Investment Development Path

Source: UNCTAD: World Investment Report, 2006


Outward foreign investment oecd countries 1913 1995

Outward Foreign Investment, OECD Countries, 1913-1995


Outward fi gdp twentieth century

Outward FI/GDP, Twentieth Century


Fdi gdp

FDI/GDP


Fdi outward stock by region selected years billions of current us dollars

FDI outward stock, by Region. Selected years (billions of current US dollars)

Source seems to be WIR


Accumulated foreign direct investment into the us 2001

Accumulated Foreign Direct Investment into the US, 2001.


Us direct investment abroad 2001

US. Direct Investment Abroad 2001


Inward fdi stocks in the us by state

Inward FDI Stocks in the US, by State.

Thompson: International EconomicsExample 8.13. Page 294


Inward and outward fdi gdp 1980 2000

Inward and Outward FDI/GDP, 1980-2000


Japan outward fi gdp

Japan: Outward FI/GDP


Example 8 6 fdi between us and japan page 281

Example 8.6 FDI between US and Japan. Page 281

Year is probably around 1990

Source: Thompson: International Economics


Canada accumulated inward investment total capital stock

Canada: Accumulated Inward Investment/Total Capital Stock


Canada foreign ownership ratios by sector

Canada: Foreign Ownership Ratios, by Sector


Mexico foreign ownership of capital 1910 1990

Mexico: Foreign Ownership of Capital, 1910-1990


Fi from oil exporters

FI from Oil Exporters

US 2006 Outward FI $1,062b

Outward FDI $235b

Source: NYT November 28, 2007


China nyt nov 24 2002

China: NYT Nov. 24, 2002


Figure 7 1 eu fdi inflows 1984 98 page 148

Figure 7.1 EU FDI Inflows, 1984-98 page 148

Hansen: European Integration


Table 7 4 intra eu fdi flows page 152

Table 7.4 Intra-EU FDI Flows. Page 152

Hansen: European Integration


Figure 7 2 eu cross border m a in manufacturing page 149

Figure 7.2 EU Cross-border M&A in Manufacturing. Page 149

Hansen: European Integration


Table 7 3 share of firms main motives for m a page 191

Table 7.3 Share of firms’ main motives for M&A Page 191

Hansen: European Integration


Figure 7 3 share of intra eu fdi by sectors p 154

Figure 7.3 Share of Intra-EU FDI, by Sectors. P. 154

Hansen: European Integration


Table 7 5 share of intra eu fdi in mfg by technology page 155

Table 7.5 Share of Intra-EU FDI in MFG., by Technology. Page 155

Hansen: European Integration


Table 7 6 intra eu fdi flows of france page 156

Table 7.6 Intra-EU FDI Flows of France. Page 156

Hansen: European Integration


Figures 7 4 and 7 5 fdi net outflows from france inside the eu page 157

Figures 7.4 and 7.5. FDI Net Outflows from France inside the EU. Page 157

Hansen: European Integration


Figure 7 6 trade and fdi between france and eu 1998 p 159

Figure 7.6 Trade and FDI between France and EU, 1998. P 159

Hansen: European Integration


Us inward outward fdi flows 1982 2004

US: Inward & Outward FDI Flows, 1982-2004


Narula dunning investment development path1

Narula/Dunning Investment Development Path


Us fi gdp 1900 2000

US FI/GDP, 1900-2000


World ifdi ofdi

World IFDI, OFDI


Top tncs from ldcs

Top TNCs from LDCs


Us net international position 1988 2005

US: Net International Position, 1988-2005

Source: US DoC. http://bea.gov/bea/newsrelarchive/2006/intinv05_fax.pdf


Link to iip data

Link to IIP data

Link to intinv05_t2.xls


Fdi inward stock selected years billions of current us dollars

FDI inward stock, selected years (billions of current US dollars)

Source: World Investment Report


  • Login