Description - Multinational Investment in Developing Countries by Thomas Andersson
Multinational Investment in Developing Countries explores the struggle for gains from direct investment between multinationals and developing countries. Its purpose is to explain differences in taxation and nationalization between countries, and to consider how direct investments can best contribute to social welfare worldwide. Using game-theory models, and taking into account that the developing countries also compete with each other to attract investors, it is shown that policies which manipulate firms' behaviour do not normally distort direct investments, whilst policies that interfere with ownership do. It also demonstrates that governments that maximize social welfare should not be expected to sacrifice the environment to attract multinationals.
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