Abstract
This article first traces the changing world economic scenario for international business over the past two decades, and then goes on to examine its implications for the location of foreign direct investment and multinational enterprise activity. It suggests that many of the explanations of the 1970s and early 1980s need to be modified as firm-specific assets have become mobile across natural boundaries. A final section of the article examines the dynamic interface between the value-added activities of multinational enterprises in different locations.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Preview
Unable to display preview. Download preview PDF.
Similar content being viewed by others
References
Almeida, P. 1996. Knowledge sourcing by foreign multinationals: Patent citation analysis in the US semi-conductor industry. Strategic Management Journal, 17 (Winter): 155–165.
Bandera, V. N., & White, J. T. 1968. US direct investments and domestic markets in Europe. Economia Internazionale, 21(February): 117–133.
Behrman, J. N., & Grosse, R. 1990. International business and governments. Columbia, SC: University of South Carolina Press.
Blair, M. M. 1995. Ownership and control: Rethinking corporate governance for the 21st century. Washington, DC: The Brookings Institution.
Booz Allen Hamilton. 1997. Cross border alliances in the age of collaboration. Los Angeles, CA: Booz Allen Hamilton.
Brainard, S. L. 1993. A simple theory of multinational corporations and trade with a trade-off between proximity and concentration. NBER Working Paper No. 4269, February, Cambridge, MA.
Braunerhjelm, P., & Svensson, R. 1995. Host country characteristics and agglomeration in foreign direct investment. Industrial Institute for EC and Social Research (mimeo), October, Stockholm.
Cantwell, J., & Harding, R. 1997. The internationalization of German companies’ R&D. Discussion Paper in International Investment and Management No. 233, University of Reading.
Caves, R. 1982 & 1996. Multinational firms and economic analysis. (1st and 2nd ed.). Cambridge, UK: Cambridge University Press.
Dalton, D. H., & Serapio, M. G. 1995. Globalizing industrial research and development. US Department of Commerce, Office of Technology Policy, Washington, DC: US Department of Commerce.
David, P. 1984. High technology centers and the economics of locational tournaments. Stanford, CA: Stanford University (mimeo).
Davidson, W. 1970. The location of foreign direct investment activity: Country characteristics and experience effects. Journal of International Business Studies, 11(2): 9–22.
Davis, D. R., & Weinstein, D. E. 1997. Economic geography and regional production structure: An empirical investigation. Cambridge, MA: National Bureau of Economic Research, Working Paper Series No. 6093 (July).
Donahue, J. D. 1997. Disunited states. New York: Basic Books.
Dunning, J. H. 1993. Multinational enterprises and the global economy. Wokingham, UK and Reading, MA: Addison Wesley.
Dunning, J. H. 1995. What’s wrong — and right — with trade theory. International Trade Journal, 9(2): 153–202.
Dunning, J. H. 1996. The geographical sources of competitiveness of firms: Some results of a new survey. Transnational Corporations, 5(3): 1–30.
Dunning, J. H. 1997a. Alliance capitalism and global business. London and New York: Routledge.
Dunning, J. H. (Ed.), 1997b. Governments, globalization and international business. Oxford: Oxford University Press.
Dunning, J. H. 1997c. The European internal market program and inbound foreign direct investment. Journal of Common Market Studies, 35(1 and 2): 1–30 and 189–223.
Dunning, J. H. 1998. The changing geography of foreign direct investment. In N. Kumar (Ed.), Internationalization, foreign direct investment and technology transfer: Impact and prospects for developing countries. London and New York: Routledge.
Edvinsson, L. 1997. Intellectual capital development. Stockholm: Skandia.
Ethier, W. J. 1986. The multinational firm. Quarterly Journal of Economics, 101: 806–833.
Florida, R. 1995. Towards the learning region. Futures, 27(5): 527–536.
Fujita, M., & Thisse, J. R. 1996. Economics of agglomeration. Discussion Paper No. 430, Institute of Economic Research, Kyoto University, Kyoto.
Grabher, G. (Ed.). 1993. The embedded firm. London and New York: Routledge.
Grossman, G. M., & Helpman, E. 1991. Innovation und growth in the global economy. Cambridge, MA: MIT Press.
Hagedoom, J. 1996. Trends and patterns in strategic technology partnering since the early seventies. Review of Industrial Organization, 11: 601–616.
Handy, C. 1989. The age of unreason. London: Hutchinson.
Hatem, F. 1997. International investment: Towards the year2001. Geneva: United Nations.
Helpman, E., & Krugman, P. R. 1985. Market structure and foreign trade. Cambridge, MA: MIT Press.
Horstman, I. J., & Markusen, J. R. 1992. Endogenous market structures in international trade. Journal of International Economics, 32: 109–129.
Johanson, J., & Vahlne, J. E. 1977. The internationalization process of the firm — A model of knowledge development and increasing market commitments. Journal of International Business Studies, 8: 23–32.
Kogut, B. 1983. Foreign direct investment as a sequential process. In C. P. Kindleberger & D. Audretsch (Eds), The multinational corporation in the 1980s. Cambridge, MA: MIT Press.
Kogut, B. 1985. Designing global strategies: Corporate and competitive value added chains. Sloan Management Review, 25: 15–28.
Krugman, P. R. (Ed.). 1986. Strategic trade policy and the new international economics. Cambridge, MA: MIT Press.
Krugman, P. R. 1991. Geography and trade. Cambridge, MA: MIT Press.
Krugman, P. R. 1993. On the relationship between trade theory and location theory. Review of International Economics, 1(2): 110–122.
Kuemmerle, W. 1996. The drivers of foreign direct investment into research and development: An empirical investigation. Working Paper No. 96:062, Harvard Business School, Boston.
Lipsey, R. G. 1997. Globalization and national government policies: An economist’s view. In J. H. Dunning (Ed.), Governments, globalization and international business. Oxford: Oxford University Press.
Liu, S. X. 1998. Foreign direct investment and the multinational enterprise. A reexamination using signaling theory. Westport, CT: Greenwood Publishing.
Loree, D. W., & Guisinger, S. E. 1995. Policy and nonpolicy determinants of US equity foreign direct investment. Journal of international Business Studies, 26(2): 281–300.
Malmberg, A., Slovell, O., & Zander, I. 1996. Spatial clustering, local accumulation of knowledge and firm competitiveness. Geografiska Annaler Series B, Human Geography, 78(2): 85–97.
Markusen, A. 1996. Sticky places in slippery space: A typology of industrial districts. Economic Geography, 72(3): 293–313.
Markusen, J. R. 1995. The boundaries of multinational enterprises and the theory of international trade. Journal of Economic Perspectives, 9(2): 169–189.
Markusen, J. R., & Venables, A. 1995. Multinational firms and the new trade theory. NBER Working Paper No. 5036, February, Cambridge, MA.
Maskell, P. 1996. Local embeddedness and patterns of international specialization. Copenhagen: Copenhagen Business School (mimeo).
Mataloni, R., & Fahim-Nader, M. 1996. Operations of US multinational companies: Preliminary results from the 1994 benchmark survey. Survey of Current Business, 76 (12): 11–37.
Meyer, K. 1998. Direct investment in economies in transition. Cheltenham, UK and Lyme, US: Edward Elgar.
Mytelka, L. K. 1996. Locational tournaments, strategic partnerships and the state. Ottawa: Carleton University (mimeo).
Ohlin, B. 1933. Inter-regional and international trade. Cambridge, MA: Harvard University Press, revised edition 1967.
Ohmae, K. 1995. The end of the nation state: The rise of regional economies. London: Harper.
Papanastassiou, M., & Pearce, R. 1997. Technology sourcing and the strategic role of manufacturing subsidiaries in the UK: Local competences and global competitiveness. Management International Review, 37(1): 5–26.
Peck, F. W. 1996. Regional development and the production of space: The role of infrastructure in the attraction of new inward investment. Environment and Planning, 28: 327–339.
Porter, M. E. 1990. The competitive advantage of nations. New York: The Free Press.
Porter, M. E. 1994. The role of location in competition. Journal of Economics of Business, 1(1): 35–39.
Porter, M. E. 1996. Competitive advantage, agglomerative economies and regional policy. International Regional Science Review, 19(1 and 2): 85–94.
Rees, D., & McLean, T. 1997. Trends in location choice. In A. Jolly (Ed.), European business handbook 1997. London: Kogan Page (for CBI).
Ruigrok, W., & Van Tulder, R. 1995. The logic of international restructuring. London and New York: Routledge.
Scaperlanda, A., & Mauer, L. J. 1969. The determinants of US direct investment in the EEC. American Economic Review, 59(September): 558–568.
Scott, A. J. 1996. Regional motors of the global economy. Futures, 28(5): 391–411.
Shan, W., & Song, J. 1997. Foreign direct investment and the sourcing of technological advantage: Evidence from the biotechnology industry. Journal of International Business Studies, 28(2): 267–284.
Srinivasan, K., & Mody, A. 1997. Location determinants of foreign direct investment: An empirical analysis of US and Japanese investment. Canadian Journal of Economics, 31(4): 778–799.
Stewart, T. A. 1997. Intellectual capital. London: Nicholas Bradley.
Storper, M. 1995. The resurgence of region economies: Ten years later: The region as a nexus of untraded interdependencies. European Urban and Regional Studies, 2(3): 191–221.
Storper, M., & Scott, A. J. 1995. The wealth of regions. Futures, 27(5): 505–526.
Taylor, J. 1993. An analysis of the factors determining the geographical distribution of Japanese manufacturing investment in the UK, 1984–91. Urban Studies, 30(7): 1209–1224.
UNCTC. 1988. Transnational corporations and world development. New York: UN.
UNCTAD. 1995. World investment report 1995: Transnational corporations and competitiveness. New York and Geneva: UN.
UNCTAD. 1996a. World investment report 1996: Transnational corporations, investment, trade and international policy arrangements. New York and Geneva: UN.
UNCTAD. 1996b. Incentives and foreign direct investment. Geneva and New York: UN.
UNCTAD. 1997. World investment report 1997: Transnational corporations, market structure and competition policy. Geneva and New York: UN.
US Department of Commerce. 1997. US international sales and purchases of private services. Survey of Current Business, 77(10): 95–138.
Vernon, R. 1966. International investment and international trade in the product cycle. Quarterly Journal of Economics, 80: 190–207.
Vernon, R. 1974. The location of economic activity. In J. H. Dunning (Ed.), Economic analysis and the multinational enterprise. London: Allen and Unwin.
Wells, L. T. (Ed.), 1972. The product life cycle and international trade. Cambridge, MA: Harvard University Press.
Wesson, T. J. 1993. An alternative motivation for foreign direct investment. Ph.D. dissertation, Harvard University.
Wheeler, K., & Mody, A. 1992. International investment and location decisions: The case of US firms. Journal of International Economics, 33: 57–76.
Wood, A. 1993. Give Heckscher and Ohlin a chance. Sussex: University of Sussex, Institute of Development Studies (mimeo).
World Bank. 1997. World development report: The state in a changing world. Oxford and New York: Oxford University Press.
Author information
Authors and Affiliations
Editor information
Editors and Affiliations
Copyright information
© 2014 Journal of International Business Studies
About this chapter
Cite this chapter
Dunning, J.H. (2014). Location and the Multinational Enterprise: A Neglected Factor?. In: Cantwell, J. (eds) Location of International Business Activities. Palgrave Macmillan, London. https://doi.org/10.1057/9781137472311_3
Download citation
DOI: https://doi.org/10.1057/9781137472311_3
Publisher Name: Palgrave Macmillan, London
Print ISBN: 978-1-349-50122-9
Online ISBN: 978-1-137-47231-1
eBook Packages: Palgrave Business & Management CollectionBusiness and Management (R0)