Multinationals, Development and Corporate Arbitrage

Between 1945 and the early 1980s, an increasing volume of foreign direct investment (FDI) flows occurred among advanced countries. It was closely connected to their rapid post-war rates of industrial expansion, particularly in more capital and technology intensive sectors, and their rapidly growing and converging levels of income. These tended to be two-way flows, often in the same sector, undertaken by large firms operating in the already well-established export markets.

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