This thoroughly updated and revised edition of a widely acclaimed, classic text will be required reading for academics, policymakers and advanced students of international business worldwide. Employing a distinctive and unified framework, this book draws together research across a range of academic fields to offer a synthesis of the determinants of MNE activity, and its effects on the economic and social well-being of developed and developing countries. Unique to the new edition is its focus on the institutional underpinnings of the resources and capabilities of MNEs, and the role of MNE activity in transmitting and facilitating institutional change.Since the initial publication of this book more than a decade ago, the economic, managerial and social implications of globalisation and technological advancement have become even more varied and prominent. Accompanying these developments, there has been a rise in scholarly interest in interdisciplinary research addressing the important challenges of an ever-changing physical and human environment. Drawing on articles and books from international business and economics, as well as economic geography, political economy and strategic management, a systematic overview of the developments in scholarly thinking is presented, while also highlighting the emerging topical issues and methodologies.
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Pt. I Facts, Theory and History
I Definitions and sources of data 3
2 The extent and pattern of foreign direct investment 17
3 The motives for foreign production 63
4 Theories of foreign direct investment 79
5 The determinants of MNE activity: the OLI paradigm revisited 116
6 The emergence and maturing of international production: an historical excursion 145
Pt. II Inside the Multinational Enterprise
7 Entry and expansion strategies of MNEs 201
8 The organisation of MNE activity: the internal network 233
9 The organisation of MNE activity: the external network 260
Pt. III The Impact of MNE Activity
10 FDI, growth and development 295
11 Technology and innovatory capacity: the role of firms 340
12 Technology and innovatory capacity: the role of government 383
13 Employment and human resource development 414
14 The balance of payments and the structure of trade 463
15 Market structure, performance and business practices 503
16 Linkages, spillovers and clustering 551
17 Distribution of the value added created by MNEs 606
18 Political, cultural and social responsibility issues 637
