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Journal of Economic Integration 1997 June;12(2) :242-258.
International Market Structuring with a Multinational Enterprise

Sukwhan Ahn In Soo Kang Hyukseung Shin 

Sookmyung Women's University
Copyright ©1997 Journal of Economic Integration
This paper examines the economic rationales and conditions for the emergence of multinational enterprises (MNEs). Promoting production efficiency is not sufficient to justify the emergence of an MNE. With taxes in the model, tax authorities heavily tax an MNE's economic activities, in which case an MNE becomes harder to justify on welfare grounds. This arises from the public good nature of MNEs and suggests a tax policy coordination to foster welfare improvement through the emergence of MNEs. (JEL: F23, D43, H21)
1. Dunning, John, H. [1992], Multinational Enterprises and the Global Economy, Addison Wesley.
2. Ahn, Sukwhan, and Park, Jungsoo [1995], "Strategic Expenditure Expending of a Multinational Corporation's Externality-Emitting R&D," Mimeograph.
3. Behrman, Jack N. [1972], The Role of International Companies in Latin America: Autos and Petrochemicals, Lexington, MA: Lexington Books.
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