国际贸易与金融双语ch10.pptVIP

Carbaugh, Chap. 10 International EconomicsBy Robert J. Carbaugh9th Edition Chapter 10: International Factor Movements and Multinational Enterprises Factor movements International movement of factors of production (capital, labor) is a substitute for international trade in goods International capital flows (investment) can substitute for trade in capital-intensive goods Labor mobility can substitute for trade in labor-intensive goods Multinational enterprises Various business operations in numerous host countries Headquarters often far from operations Stock ownership and management are usually multi-national Frequently employ vertical integration, horizontal integration, conglomerate structure Foreign direct investment A foreign or multinational firm can buy a controlling interest in a local firm Buy or build new plants or equipment overseas Shift funds abroad to expand a subsidiary Reinvest the earnings of a foreign subsidiary Reasons for foreign direct investment Demand factors Serve different local markets Respond to market competition Cost factors Access to key raw materials Labor costs Transportation costs Government policies Choice between export and FDI Choice between licensing and FDI International joint ventures Two companies can operate a venture in a third country A foreign firm can work with a local company A foreign firm can form a venture with a unit of the local government Reasons for international JVs Cost sharing - RD, capital expenditures (in mining and oil, for example) Avoiding restrictions on foreign ownership of local firms (ensuring local participation) Forestalling pressure for protectionism Problems: divided control means success of JV depends on ability of firms to work together Effects of an international JV Controversy over multinationals Employment Host country may not gain many jobs, foreign managers often brought in; source country worries about losing jobs Technology transfer MNEs are reluctant to share technology with host nations;