FOREIGN MANAGEMENT, INTERNATIONAL CAPITAL, AND INCOME REDISTRIBUTION

Author: THOMPSON HENRY  

Publisher: Routledge Ltd

ISSN: 1016-8737

Source: International Economic Journal, Vol.7, Iss.3, 1993-0, pp. : 33-41

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Abstract

This paper cxamines the impact of foreign management as a separate input in a competitive economy open to both international trade and international movement of productive capital. Three inputs (capital, labor, management) are used to produce two final goods in a model characterized by competition, homogeneous products, and full employment. This model provides a simple starting point for the study of multinational firm activity, building on the fundamental competitive factor proportions model of production and trade. A clear distinction arises between international movements of capital and management, and international movements of the two inputs are linked. [F 11, F 23]