Impact of Foreign-Owned Companies on Host Economies

This book analyses the macro and microeconomic effects on a host economy in regards to the entry of foreign-owned companies (i.e., multinational enterprises MNEs). There is some controversy regarding the impact of MNEs, as can be seen in the active antiglobalisation movements. In addition, this book also makes use of an applied methodology, namely, computable general equilibrium (CGE) simulations, to provide quantitative outcomes and not just qualitative intuitions regarding how MNEs affect economies. CGEs are suitable to derive those results, but very few of them have considered the presence of MNEs. Thus, the CGE model with MNEs presented in this book offers a rather new approach to study the effects of MNEs.