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As the field of international business has matured, there have been shifts in the core unit of analysis. First, there was analysis at country level, using national statistics on trade and foreign direct investment (FDI). Next, the focus shifted to the multinational enterprise (MNE) and the parent's firm specific advantages (FSAs). Eventually the MNE was analysed as a network and the subsidiary became a unit of analysis. We untangle the last fifty years of international business theory using a classification by these three units of analysis. This is the country-specific advantage (CSA) and firm-specific advantage (FSA) matrix. Will this integrative framework continue to be useful in the future? We demonstrate that this is likely as the CSA/FSA matrix permits integration of potentially useful alternative units of analysis, including the broad region of the triad. Looking forward, we develop a new framework, visualized in two matrices, to show how distance really matters and how FSAs function in international business. Key to this are the concepts of compounded distance and resource recombination barriers facing MNEs when operating across national borders.

He lauds the deal for its national treatment of investors, but fails to make known that foreign ownership in the U.S. is 4 per cent. In Canada he puts it at about 45 per cent. He writes the trade deal has opened the door to investment and trade in the U.S. It might be great for Canadians to invest in the U.S., but of what benefit will that be to this country when that person or company pays taxes in the U.S. and re-invests profits in the U.S.? What that amounts to is a transfer of funds from Canada to the U.S.

Building Commissioner Michael J. Clancy had issued a cease-and- desist order against [Alan Rugman] in February, saying that his approximately 20-acre Myrtle Street property is intended for rural, residential, and noncommercial uses and that the contractor's yard, which occupies about a quarter of the land, violated the town's bylaws. Rugman then filed an appeal with the town's zoning board, contending that the property has been used commercially since the 1940s by his father and grandfather, and predates zoning. He said that as a result, the property was not subject to current zoning laws. \"We have zoning bylaws in this town that are not enforced in any consistent basis,\" [Kevin Zygadlo] said. \"There's one set of rules for Rugman and townies, and another set of rules for everyone else.\"

This paper presents the first systematic empirical evidence on transfer pricing in multinational corporations. We examine the Canadian petroleum industry, which is dominated by foreign multinationals. The data cover the period 1974-84 and allow us to analyse the allegation of excess cost paid by Canadians for crude oil imports. We find little empirical evidence to support the view that during this period, FOB crude oil prices paid by Canadian affiliates of multinational corporations were higher than FOB third-party or arm's-length prices, once qualitative factors are taken into account. Indeed, the opposite conclusion, that Canada has benefited from multinational oil companies' transfer-pricing practices, appears to prevail. /// Prix de cession interne et les coûts excédentaires des importations canadiennes de pétrole: renseignements additionnels pertinents au dossier Bertrand vs Rugman. Ce mémoire présente les premiers résultats empiriques systématiques sur les prix de cession interne dans les firmes plurinationales. Les auteurs étudient l'industrie pétrolière canadienne qui est dominée par des firmes plurinationales dont la maison-mère est à l'étranger. Les données couvrent la période 1974-84 et permettent d'analyser les allégations à l'effet que les Canadiens auraient payé des coûts excédentaires pour leurs importations de pétrole brut. Les auteurs trouvent peu de support empirique pour étayer le point de vue que, durant cette période, les prix FOB du pétrole brut payés par les succursales canadiennes des firmes plurinationales ont été plus élevés que les prix FOB payés par des tiers ou des acheteurs sans liens avec la firme, une fois qu'on a pris en compte certains facteurs qualitatifs. En fait, il semble que la conclusion opposée -- à savoir que le Canada a bénéficié des pratiques de prix de cession interne des firmes plurinationales -- semble plutôt prévaloir.

The Porter diamond model has been widely used as a basis for examining international competitive strategies. This article examines the ways in which Mexico is linking itself to the U.S. economy via a double diamond. The strategies of Mexico's leading clusters - petrochemicals and automobiles - are considered within the double diamond framework.

Porter's home-base diamond model of international competitiveness is seriously flawed when applied to a small, open, trading economy like Canada's. Porter's framework needs to be adapted to explain Canada's successful resource-based multinationals, foreign subsidiaries and access to the triad market of the United States through the Free Trade Agreement. A new \"double diamond\" framework is developed to achieve this.

Adding to the touchiness of the situation is the widespread suspicion in each country that the other has achieved an advantage, or is about to do so. ''There are three people working on this at the U.S. trade representative's office and one at Commerce, compared to 40 in Canada,'' said Teresa Taylor, a policy analyst for the Northeast-Midwest Congressional Coalition in Washington. ''Canada is ultimately going to gain more out of the treaty because they are paying more attention to it.'' Glendale Spinning Mills Ltd. in Hamilton, Ont., is responding to the phasing out of the 17 percent tariff on cotton yarn imports by investing heavily in automation. ''We will be producing about three times as much yarn with about one-third the work force by the end of next year,'' said Mohamed A. Kamel, the company's president. One positive result: the company expects to expand sales into the Northeastern United States. ''It's the only way to compete,'' he said. Labor leaders and other critics say the treaty - and free trade in general - is being used to whittle away Canada's commitment to social benefits, like unemployment insurance, which is much more generous than that in the United States. And they say it is behind such controversial changes as the 9 percent sales tax recently proposed by the Conservative Government to replace corporate taxes that currently burden Canadian business. ''One of the consequences of a unified market is that you have to have common rules,'' said Bruce Campbell, an economist for the Canadian Labor Congress. ''The pressure is on.''

Economists tend to assume that multinational enterprises (MNEs), because they are vehicles to increase investment and transfer technology and managerial expertise, must be positive forces for economic development in the Third World. However, they rarely examine carefully the negative effects that are possible from MNEs, which has been a staple argument of antiglobalization radicals. [Alan M.