Figure 3.7. A world without foreign affiliates: How much would countries lose?

2021 ◽  
Keyword(s):  
Foreign Affiliates

What's at Stake for the LDCs, Now that the Uruguay Round Talks have been Suspended? (The Distinguishedl Lecture)

1991 ◽  
Vol 30 (4I) ◽  
pp. 579-599
Author(s):  
Robert E. Baldwin
Keyword(s):  
Multinational Firms ◽  
Uruguay Round ◽  
National Policy ◽  
Trade In Services ◽  
Trade Negotiation ◽  
Multilateral Trade Negotiation ◽  
Industrial Countries ◽  
Goods And Services ◽  
Foreign Affiliates ◽  
Merchandise Trade

Until negotiations collapsed in early December, the Uruguay Round gave promise of being the most significant multilateral trade negotiation since 1947, when the General Agreement on Tariffs and Trade (GA TI) was implemented and tariffs levels of the industrial countries were sharply cut. There are at least three reasons for this conclusion. First, by agreeing at the outset to bring both agriculture and textiles under GATT discipline, the participants created the opportunity for both rich and poor agricultural exporting nations and relatively low-wage, newly industrializing LDCs to benefit significantly from GATT-sponsored trade negotiations. Prior to the Uruguay Round, the benefits to these countries of such negotiations had been limited, since these two sectors were excluded from any significant liberalization. Second, by agreeing to formulate new rules relating to trade in services, trade-related aspects of· intellectual property rights, and trade-related investment issues, members took an important step in modernizing the GATT. As economic globalization has accelerated, there is a growing realization that arms-length merchandise transactions, the traditional concern of the GATT, are only one aspect of the real-side economic relations of current concern to national policy-makers and the economic interests they represent Now international commercial activities also involve merchandise trade among multinational firms and their foreign affiliates, international trade in services among independent agents as well as among affiliated enterprises, foreign direct investment activities, production nf goods and services in foreign affiliates for sale either abroad or at home, international flows of technology, and temporary movements of labour across borders. Although the so-called new issues in the Uruguay Round do not cover all of these matters, they go a considerable way in making the GATT more relevant for dealing with the problems of increasing internationalization.

scholarly journals Information related service trade within firms: evidence from firm-level data in Germany

2021 ◽  
Author(s):  
Kurt A. Hafner ◽  
Jörn Kleinert
Keyword(s):  
Multinational Firms ◽  
Economies Of Scope ◽  
It Services ◽  
Firm Level ◽  
It Service ◽  
Level Data ◽  
Related Service ◽  
Foreign Affiliates ◽  
Knowledge Intensive ◽  
Parent Companies

AbstractMulti-unit firms have productivity advantages over competitors because of their use of a non-rival asset—firm-specific knowledge—in several units. Using knowledge-intensive services leads to economies of scope in production by multi-unit firms. Such headquarter are usually supplied by parent companies and serve to link different firm units. Headquarter services are difficult to quantify in statistics or surveys, except when they cross-borders and the exchange of services between MNEs and their offshore subsidiaries becomes apparent. This study therefore focuses on IT service imports to explain productivity differences among foreign affiliates of multinational firms in Germany. The authors base the analysis on the population of foreign multinational firms active in Germany and analyze what effect the import of IT services has on their productivity. They find that IT headquarter service flows have significant impacts on foreign affiliates’ productivity in general and US affiliates in particular. As the average IT-service flows (per firm and partner) from parent countries are significantly higher for US affiliates than non-US affiliates, they conclude that the import of IT services from the parent-company is a source of the productivity advantages of US affiliates in Germany.

Using IRS Data to Identify Income Shifting to Foreign Affiliates

2017 ◽  
Author(s):  
Lisa De Simone ◽  
Lillian F. Mills ◽  
Bridget Stomberg
Keyword(s):  
Income Shifting ◽  
Foreign Affiliates

scholarly journals FDI Location Decision: Evidence from Firms Investing in China

2016 ◽  
Vol 11 (6) ◽  
pp. 47
Author(s):  
Omar Belkhodja
Keyword(s):  
Location Choice ◽  
Agglomeration Economies ◽  
Multinational Firm ◽  
Future Research ◽  
Location Decision ◽  
Policy Makers ◽  
Logit Estimation ◽  
Foreign Affiliates ◽  
Firm Data ◽  
Investments In Education

By relying on an extensive set of firm data for foreign affiliates in China, the paper investigates the determinants of FDI location choice for multinational firm subsidiaries located in different special economic and investment zones. Using a logit estimation, the results suggest that various factors explain the location choice of FDI in China, and vary according to the country of origin and the sector of activity. Overall, the results show that the protection of intellectual rights, the agglomeration economies, the investments in education and the GDP of the region affect the location choice of FDI. Implications can be drawn for policy-makers to divert FDI from coastal to inland regions. Finally, the last part of the paper derives, from the obtained results, implications for future research and theory building.

scholarly journals Ownership Control of Foreign Affiliates: A Property Rights Theory Perspective

2016 ◽  
Vol 2016 (1) ◽  
pp. 12648 ◽  
Author(s):  
Nigel Driffield ◽  
Tomasz Marek Mickiewicz ◽  
Yama Temouri
Keyword(s):  
Property Rights ◽  
Property Rights Theory ◽  
Foreign Affiliates ◽  
Ownership Control
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