《MULTINATIONALS IN CANADA：THEORY，PERFORMANCE AND ECONOMIC IMPACT》

1. INTRODUCTION1

Performance and Efficiency1

Methodology4

Plan of the Book4

I. THEORY OF THE MULTINATIONAL ENTERPRISE9

2. THE THEORY OF FOREIGN INVESTMENT11

The Determinants of Foreign Investment11

The Determinants of Foreign Investment in a Canadian Context14

The Empirical Literature18

A Summary of the Determinants of Foreign Investment23

International as a General Theory of FDI27

3. TOWARDS A THEORY OF THE MULTINATIONAL ENTERPRISE31

Methodology, Assumptions, and Definitions31

Why International Trade?33

Why International Production?34

Why Internalization?35

Why the MNE?36

Conclusions and Implications37

Appendix: The Origins of Internalization39

4. A THEORY OF THE MULTINATIONAL ENTERPRISE IN A CANADIAN CONTEXT43

Introduction43

The New General Theory of FDI43

An Extended Model of International Trade, Investment, and Licensing46

Trade, FDI, and Licensing: The Relevant Costs over Time50

A Simple Model of FDI, Trade, and Licensing50

Conditions for Existence of Exporting, Foreign Direct Investment, and Licensing56

Summary, Conclusions, and Implications of the Model57

The Theory of Internalization in a Canadian Context59

II. PERFORMANCE OF MULTINATIONALS IN CANADA63

5. AN EMPIRICAL ANALYSIS OF PROFITS AND RISK IN CANADIAN MULTINATIONALS65

Introduction65

Profits and Risk of Canadian Oil Firms66

Profits and Risk in the Canadian Mining Sector72

Conclusion75

6. PRIVATE AND SOCIAL RATES OF RETURN FROM U.S. FOREIGN DIRECT INVESTMENT IN CANADA77

Introduction77

Methodology78

Criticism of the Grubel-Jenkins Approach79

Results83

7. TRANSFER PRICING IN THE CANADIAN MINING INDUSTRY87

Introduction87

The Transfer Pricing Literature89

Transfer Pricing and Internalization91

Methods of Testing for Transfer Pricing94

Results95

Conclusions99

8. THE ECONOMIC IMPACT OF MULTINATIONALS IN CANADA100

Introduction100

The Impact of the Mining Industries on the Canadian Economy101

The MNE as an Agent for Technology Transfer103

Multinationals and Regional Disparities104

Nationalism in Canada109

Applications of a Model of Nationalism112

Political Aspects of a Free-Trade Policy114

Oil Prices and Self-Sufficiency116

A National Energy Policy?118

III. PUBLIC POLICY TOWARDS MULTINATIONALS121

9. THE FOREIGN OWNERSHIP DEBATE IN CANADA123

The Watkins, Wahn, and Gray Reports123

Legislation for the Control of Foreign Investment125

Canadian Attitudes Toward Foreign Investment127

Epilogue129

10.THE REGULATION OF FOREIGN INVESTMENT IN CANADA132

Introduction132

FIRA---The Record to Date134

Interpretation of FIRA's Activities: Equity versus Efficiency137

Foreign Investment and the Canadian Balance of Payments141

Conclusions145

Epilogue146

11.TARIFF AND TRADE EFFECTS OF MULTINATIONALS IN CANADA152

Introduction152

Canadian Commercial Policy153

The Costs of Independence158

Empirical Work on the Costs of the Tariff160

Free Trade and Canadian Independence163

More Recent Studies on the Tariff167

Foreign Investment and Monetary Policy169

Why Canadian Cannot Have an Independent Economic Policy170

12.CONCLUSIONS173

Selected Bibliography178

Index of Names189

Index of Subjects193