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Trade policies and the strategies of multinationals in the international grain market
Author(s) -
Scoppola Margherita
Publication year - 1993
Publication title -
agribusiness
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.57
H-Index - 43
eISSN - 1520-6297
pISSN - 0742-4477
DOI - 10.1002/1520-6297(199305)9:3<189::aid-agr2720090302>3.0.co;2-7
Subject(s) - diversification (marketing strategy) , international trade , market power , international economics , economics , foreign direct investment , business , international market , industrial organization , market economy , marketing , macroeconomics , monopoly
Multinationals exercise market power in international grain trading activities and affect the volume and direction of trade flows. A high degree of integration in the cereals and cereals substitutes sectors and diversification in other sectors allow companies to undertake a wide range of strategies, such as global strategic behaviour and transfer pricing, which influence the international grain trade and the effectiveness of trade polices. Such influences may be identified in a new framework of analysis, by taking into account different ways in which foreign direct investment occurs. © 1993 John Wiley & Sons. Inc.