INSEAD Library

Originally presented as the author's thesis, Massachusetts Institute of Technology, 1960

Includes bibliographical references and index

Digitized

The International Operations of National Firms A Study of Direct Foreign Investment Contents INTRODUCTION Charles P. Kindleberger xiii 1 A COMPARISON OF DIRECT AND PORTFOLIO INVESTMENT The Definitions of Direct and Portfolio Investment and Some Empirical Evidence of Differences in Their Behavior The Theory of Portfolio Investment Application of the Theory of Portfolio Investment to Direct Investment The Theory of Direct Investment The International Operations of National Firms 27 Conclusion 2 THE THEORY OF INTERNATIONAL OPERATIONS--PART I Introduction Barriers to International Operations--the Advantages of National Firms in Their Home Market Removal of Conflict as a Cause of International Operations Diversification as a Motivation for International Operations The Possession of Advantages as a Cause of International Operations The Possibility of Licensing Some Empirical Evidence on International Licensing Arrangements of United States Firms 3 THE THEORY OF INTERNATIONAL OPERATIONS--PART II The Many Forms of International Operations 65 The Manysidedness of International Operations The International Distribution of Advantages and the Role of Historical Accident International Operations and International Trade 79 Monopoly and International Operations Summary 1 1 6 10 23 30 32 32 34 37 40 41 46 54 65 68 72 85 91 4 SOME EMPIRICAL EVIDENCE ON UNITED STATES INTERNATIONAL OPERATIONS--MAINLY IN MANUFACTURING INDUSTRIES Introduction Aggregate United States Investment Canada United Kingdom Western Europe Latin America Conclusions 97 97 100 122 134 145 155 157 5 DIRECT INVESTMENT AND THE FINANCING OF INTERNATIONAL OPERATIONS 167 Introduction 167 The Perfect Capital Market 169 Barriers to Capital Movement 174 Other Imperfections 181 Appendix: An Alternative Theory of the Financing of International Operations 192 6 EFFECTS OF INTERNATIONAL OPERATIONS ON INCOME Associated Capital Movements Associated Technical Knowledge The Fact of Centralized Control The Nationality of the Firm SELECTED BIBLIOGRAPHY CURRICULUM VITAE PUBLICATIONS AND RESEARCH INDEX 226 230 231 237 211 211 217 219 222