Get Protecting Foreign Investment: Implications of A WTO Regime PDF

By Carlos Correa, Nagesh Kumar

ISBN-10: 1842771825

ISBN-13: 9781842771822

ISBN-10: 1848131666

ISBN-13: 9781848131668

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Example text

This tends to limit the diffusion of knowledge brought in by the MNE in the host country through vertical inter-firm linkages. The extent of these practices for MNEs from other home countries is not clear. 2. Training and employee mobility Some studies have documented the spillovers from FDI to local economies in the form of on-the-job training provided by MNE affiliates to their  |   personnel and through the mobility of trained personnel. Gerschenberg (1987) examined detailed career data for 72 top and middle-level managers in 41 manufacturing firms and concluded that MNE affiliates offer more training to their managers than local private firms, although the mobility seemed to be lower for managers employed by MNEs than for those in private local firms.

Over the 1970s, a number of initiatives were launched to provide a framework for the international regulation of international business. Some of these initiatives, however, could not be completed successfully because of a lack of consensus between developed and developing countries on their legal status. On the other hand, there were initiatives in the 1980s and later that tended to curtail the ability of national governments to regulate the operations of TNCs through multilateral trade negotiations.

Gerschenberg (1987) examined detailed career data for 72 top and middle-level managers in 41 manufacturing firms and concluded that MNE affiliates offer more training to their managers than local private firms, although the mobility seemed to be lower for managers employed by MNEs than for those in private local firms. Chen (1983) also reported significantly higher training expenditures on the part of MNE affiliates in Hong Kong than for local firms in three of the four industries sampled. Tan and Batra (1995) found that although foreign firms were more likely to train their workers, once other factors were controlled the effect remained significant only for Taiwan and Malaysia.

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Protecting Foreign Investment: Implications of A WTO Regime and Policy Options by Carlos Correa, Nagesh Kumar


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