普格尔_国际经济学课件chapter15 multinationals and migration international factor movements

1、Chapter 15Multinationals and Migration: International Factor MovementsMcGraw-Hill/Irwin 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.Outline of chapter 15Foreign direct investment Multinational enterprisesFDI:history and current patternsWhy do multinational enterprises exist?Taxation of

2、 multinational enterprisesprofitsMNEs and international tradeShould the home country restrict FDI outflows? Should the host country restrict FDI inflows? Focus on ChinamigrationHow migration affects labor marketsShould the sending country restrict emigration?.1.Should the receiving co

3、untry restrict imigration?12.McGraw-Hill/Irwin 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.1.Foreign Direct Investment (FDI)Flow definition:Flow of funding provided byA.investors (usually firms) to establish or acquire foreign companies or to expand or finance existing foreign companie

4、s that the investors own.Key is sufficient ownership to control or influence the management of the foreign company.B.Stock definition:Total value of existing fundingC.(equity and debt) of foreign companies that has been provided by investors that own these foreign companies.McGraw-Hill/Irwin 2007 Th

5、e McGraw-Hill Companies, Inc., All Rights Reserved.2.Multinational Enterprise (MNE)A firm that owns and controls operations in more than one country.The parent firm of the MNE is located in the home country. The home country is the source country for outward FDI.The MNE has one or more affiliates lo

6、cated in one or more host countries. The host country is the destination country for inward FDI.A.B.C.McGraw-Hill/Irwin 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.Examples of FDI and Portfolio InvestmentsMcGraw-Hill/Irwin 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.3.FDI

7、:history and current patternsFigure 15.1 Major Home Countries Direct Investments, Endof 2002 (Billions of U.S. Dollars)McGraw-Hill/Irwin 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.Table: Transfer Price Affects Global After-Tax ProfitMcGraw-Hill/Irwin 2007 The McGraw-Hill Companies, In

8、c., All Rights Reserved.4.Why Do MNEs Exist?Inherent disadvantages of operating a foreign affiliate competing against local firms.Firm-specific advantages of the MNE, especially intangible assets.Internalization advantages in using these assets.Location factors based on resource costs and availabili

9、ty, customer demand, government policies, and other considerations.Oligopolistic rivalry that uses FDI in the firmsstrategies for competing.I.II.III.IV.V.McGraw-Hill/Irwin 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.5.Taxation of mulinational enterprises profitsTransfer pricingThe sett

10、ing by the firm of monetary values (prices) for things that move between units of the firm (such as things that move among the parent firm and the foreign affiliates of an MNE).McGraw-Hill/Irwin 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.6.MNES and international tradeAbout one-third o

11、f the worlds international trade in goods occurs as intrafirm trade between units of the multinational enterprises located in different countiesAnother third of the worlds international trade involves a multinational enterprise as the seller or buyer,trade with some other firm.As long as transport c

12、osts and trade barriers are low enough,FDI can be used to reduce total costs by locating different stages of overall production in different countries.FDI and trade could be substitues or complements.McGraw-Hill/Irwin 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.7.Should the home countr

13、y restrict FDI outflow?Key effectWorkers and othersOwners of the multinational enterprisesThe government budgetAny external benefits or costs associated with ofdiMcGraw-Hill/Irwin 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.8.Should the host country restrict FDI inflows? Focus on China

14、Standard static analysis :Workers gain from increased demandMust weigh indirect economic effectsMcGraw-Hill/Irwin 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.9.ImmigrationFigure 15.2 Gross Immigration Rates into the United States, 1820-2004, and Canada, 1852-2004McGraw-Hill/Irwin 2007

15、The McGraw-Hill Companies, Inc., All Rights Reserved.Figure 15.3 Net Immigration Rates into the European Union, 1960-2004McGraw-Hill/Irwin 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.10. How migration affects labor marketsFigure 15.4 Labor-Market Effects of MigrationMcGraw-Hill/Irwin 2

16、007 The McGraw-Hill Companies, Inc., All Rights Reserved.11.Should the sending country restrict emigration? Effects on the government budget The loss of futurentax contributions is likely to be larger than the reduction in future government spending Sending countries donot receive much in the way of remittances probaly lose well- beingMcGraw-Hill/Irwin 2007 The McGraw-Hill Companies, Inc., All Rights Reserved.12.Should the receiving country restrict imigration?Effects on the government budget External costs and benefits Knowledge