Professor Dunning’s paper on the role of multinational enterprises in the international allocation of economic activity takes its starting point in some of the most promising advances in economic theory in recent years. His eclecticism leads him to apply elements from the theory of property rights, of information and transaction costs, of risks and uncertainty and of scale economies. These various elements are at present being used to develop the theory of the nature of the firm, a work initiated by Ronald Coase in his seminal article from 1937 and continued in particular by Alchian and Demsetz in the 1960s and 1970s.
KeywordsEconomic Activity Transaction Cost Foreign Investment Comparative Advantage Foreign Firm
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