How multinationals contribute, or don't, to global prosperity Globalization and multinational corporations have long seemed partners in the enterprise of economic growth: globalization-led prosperity was the goal, and giant corporations spanning the globe would help achieve it. In recent years, however, the notion that all economies, both developed and developing, can prosper from globalization has been called into question by political figures and has fueled a populist backlash around the world against globalization and the corporations that made it possible. In an effort to elevate the sometimes contentious public debate over the conduct and operation of multinational corporations, this edited volume examines key questions about their role, both in their home countries and in the rest of the world where they do business. Is their multinational nature an essential driver of their profits? Do U.S. and European multinationals contribute to home country employment? Do multinational firms exploit foreign workers? How do multinationals influence foreign policy? How will the rise of the digital economy and digital trade in services affect multinationals? In addressing these and similar questions, the book also examines the role that multinational corporations play in the outcomes that policymakers care about most: economic growth, jobs, inequality, and tax fairness.

Internationally-distinguished scholars show that multinational firms and the international systems seeking to regulate them are political and precarious.

Depending on one's point of view, multinational enterprises are either the heroes or the villains of the globalized economy. Governments compete fiercely for foreign direct investment by such companies, but complain when firms go global and move their activities elsewhere. Multinationals are seen by some as threats to national identities and wealth and are accused of riding roughshod over national laws and of exploiting cheap labor. However, the debate on these companies and foreign direct investment is rarely grounded on sound economic arguments. This book brings clarity to the debate. With the contribution of other leading experts, Giorgio Barba Navaretti and Anthony Venables assess the determinants of multinationals' actions, investigating why their activity has expanded so rapidly, and why some countries have seen more such activity than others. They analyze their effects on countries that are recipients of inward investments, and on those countries that see multinational firms moving jobs abroad. The arguments are made using modern advances in economic analysis, a case study, and by drawing on the extensive empirical literature that assesses the determinants and consequences of activity by multinationals. The treatment is rigorous, yet accessible to all readers with a background in economics, whether students or professionals. Drawing out policy implications, the authors conclude that multinational enterprises are generally a force for the promotion of prosperity in the world economy.

Internationally useful at undergraduate and postgraduate level, the fourth edition of this highly successful textbook analyzes and compares six different theories of the multinational firm, called the Dominating, the Coordinating, the Knowing, the Designing, the Networking and the Politizing multinational. These theories reflect the dominating perspectives of research on the multinational firm in the global economy over the last five decades.

'Thankfully, the new edition of this popular book retains all that made the original so impressive and useful. Six important theoretical perspectives of the multinational company (MNC) are discussed at length and compared. Why MNCs exist, how they compete, and their impact on society are the big, eternal questions addressed by the book. What is new in this edition are: an updated description of the international environment, an evaluation of Buckley's recent theory about the global factory, the influence of economic clusters like Silicon Valley on internalization theory, and a revised discussion of the organizational capability perspective. The book can be read and understood at multiple levels, from learning what each theory is about to appreciating the more subtle implications of their differences for firms and society. Despite the complexity of the subject, the book is an easy and enjoyable read. It is written in a lively, user-friendly style, with many illustrated examples.' – William G. Egelhoff, Fordham University, US This expanded and updated edition of a successful textbook will be required reading for both undergraduate and postgraduate students of international business, international management and international economy courses. The current debate about the multinational firm as an actor in the global economy is intense and many-sided. This thoroughly accessible and compact textbook presents, analyzes and compares six different theories of the multinational firm that have dominated the research in international business during the last four decades. The author discloses the basic building blocks and assumptions behind each theory so the reader can reach a better understanding of why the multinational firm is looked upon in so many different ways by researchers and stakeholders.