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The Multilateral Investment System and Multinational Enterprises$
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Thomas L. Brewer and Stephen Young

Print publication date: 1998

Print ISBN-13: 9780198293156

Published to Oxford Scholarship Online: October 2011

DOI: 10.1093/acprof:oso/9780198293156.001.0001

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Multinational Enterprises and Foreign Direct Investment Policy

Multinational Enterprises and Foreign Direct Investment Policy

Theory and Issues

(p.11) 1 Multinational Enterprises and Foreign Direct Investment Policy
The Multilateral Investment System and Multinational Enterprises

Thomas L. Brewer

Stephen Young

Oxford University Press

The multinational enterprise is an enterprise which owns, controls, and manages value-adding activities in more than one country. It engages in production and/or service activities across national boundaries, financed by foreign direct investment. This chapter provides an overview of the nature and growth of the multinational enterprise (MNE) and foreign direct investment (FDI). It discusses the economic theory of MNEs and international production, the implications for international investment agreements, and the basic arguments for an international framework of rules for FDI. This chapter also reviews the basic policy instruments applied at national, bilateral, regional, and multilaterals levels, illustrating the problems associated with the complexity and patchwork of rules existing at present.

Keywords:   multinational enterprise, foreign direct investment, international production, international investment agreements, national, bilateral, regional, multilateral

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