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Chapter 14: Multinational firms

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1 Chapter 14: Multinational firms
Charles van Marrewijk International Trade Chapter 14: Multinational firms

2 14.2a export distribution by product and country; USA, 2007

3 14.2b export distribution by product and country; USA, 2007

4 14.3a import distribution by product and country; USA, 2007

5 14.3b import distribution by product and country; USA, 2007

6 14.4 US total and related party imports and exports, 2002-2014

7 14.5 US related party trade; percent of total import or export, 2002-2014

8 14.6 size of US affiliates relative to local firms

9 14.7 US sectoral related party trade; per cent of total import or export, 2014

10 14.8 destination of US affiliate sales by sector (percent)

11 14.9 horizontal FDI proximity – concentration trade-off
2 options Exporting firm Multinational firm compare profits

12 14.10 export or multinational decision with symmetric countries
export multinational

13 14.11 decision process and firm types
headquarter location? America Britain multi-plant production? multi-plant production? yes no yes no

14 14.12 possible national / multinational regimes
National firms only Mixed regimes yes no Multinationals only yes no yes no yes 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 yes no yes no no

15 14.13 size and endowment distributions
America capital abundant Britain labour abundant America large Britain small capital America small Britain large America labour abundant Britain capital abundant labour

16 multinational firms only
14.14 characterization of main horizontal FDI regimes national firms only capital mixed regimes mixed regimes multinational firms only mixed regimes mixed regimes national firms only labour

17 14.15 firm heterogeneity and horizontal FDI
total profit multinational export domestic exit


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