The New Theory of Foreign Direct Investment: Merging Trade and Capital Flows

What is the origin and purpose of a multinational firm? How is it different from its native counterparts? In what countries and industries should one expect to see more of them? What is their impact on the pattern of trade and the distribution of wealth across countries? With the enormous growth of foreign direct investment (FDI) in the last 25 years, these questions have found voices in two divergent literatures, both rooted in the general