Business Investment Abroad: The Jury is Still Out
That no clear cut answer can be given on the question of the overall social desirability of business investment abroad, is quite manifest from the preceding eight chapters. The reasons for the inconclusiveness are many. Two of these reasons stand out. Business investment abroad is too complex and too diverse a phenomenon for the whole range of enterprise to be lumped together into a single aggregate and to be judged as one homogeneous mass. The second reason is that the process is not mature. The character of business investment abroad is still in the process of change and evolution. As the character of international business evolves and, simultaneously, the flow of investments and the absolute importance of foreign-owned assets increase, what is being witnessed in the fifties, sixties and seventies is not the continuing costs associated with a new economic order but the much more painful costs of adaptation from one economic order to a new one.
KeywordsHost Country Foreign Policy International Business Economic Order International Investment
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- 1.See, in particular, Raymond Vernon, ‘Multinational Business and National Economic Goals’, Industrial Organization, XXV (Summer 1971) pp. 693–705.Google Scholar