Abstract
This chapter is concerned with appraising the costs and benefits of FDI. Unlike previous studies1 it does not focus on the role of capital flows, which we have argued are an incidental part of FDI. Instead it considers FDI as a consequence of the internalisation of markets for proprietary information and other intermediate products. The costs and benefits we consider are those of an internal market, in comparison to an external market.
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5. A Policy for Foreign Direct Investment
Some methodological issues in appraising the costs and benefits of FDI are considered in J. H. Dunning, ‘Evaluating the costs and benefits of foreign direct investment: Some general observations’, University of Reading Department of Economics Discussion Papers in International Investment and Business Studies, No. 32, 1977.
For an appraisal of costs and benefits see G. L. Reuber et al., op. cit., Chapter 2, and R. Murray, ‘The internationalisation of capital and the nation state’, New Left Review, 67 (1971), pp. 84–109, reprinted in
H. Radice (ed.), International Firms and Modern Imperialism, Harmondsworth, 1975.
Cf. J. N. Bhagwati (ed.), Illegal Transactions in International Trade: Theory and Measurement, Amsterdam, 1974.
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© 1979 Mark Casson
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Casson, M. (1979). A policy for foreign direct investment. In: Alternatives to the Multinational Enterprise. Palgrave Macmillan, London. https://doi.org/10.1007/978-1-349-04645-4_5
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