Question
1. (10pts)Thereisusuallyalotofconcerninanycountrywhenforeignersacquirea largeshareofdomesticassets;JapaneseacquisitionsintheUnitedStatesduringthe 1980's illustrate this point. In addition, there is concern when domestic capital is invested abroad; one complaint is that U.S. jobs are
1. (10pts)Thereisusuallyalotofconcerninanycountrywhenforeignersacquirea largeshareofdomesticassets;JapaneseacquisitionsintheUnitedStatesduringthe
1980's illustrate this point. In addition, there is concern when domestic capital is invested abroad; one complaint is that U.S. jobs are exported. Should countries restrictcapitalinflowsand/orcapitaloutflowsbecauseoftheseconcerns?Carefully analyzethe benefitsandcostsof internationalcapitalflows,focusing ondirectforeigninvestment. Whatshouldpublicpolicybeinbothhostandhomecountriestowardsmultinational corporations?
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International Economics
Authors: Thomas A. Pugel
15th edition
73523178, 978-0077769529, 007776952X, 978-0073523170
