Predictions and Policy Implications

Abstract

A rational long-term policy toward the MNE, and toward international trade and investment in general, must be based upon an analysis of the underlying forces in the world economy. A theory of these forces and of how they have influenced the growth of the MNE was presented in the earlier chapters of this book. The present chapter shows how the theory can be used to predict the future evolution of MNEs and appraise the probable effects of various policies toward them.