Trade liberalization policies have changed the assumptions of
economic theory because they have changed the core definition of
its concepts-imports and exports. When most trade is done in
components rather than finished goods, how do we assign
nationaility to value added during the production process? Anguelov
analyzes foreign direct investment (FDI) as the core tool behind
the internationalization of the production function. He tracks the
changing nature of incentives in location and diversification of
multinational corporations (MNCs), as well as the role governements
have in the creation and implementation of trade policies that
impact MNC investments.
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