A Simple Theory of Multinational Corporations and Trade With a Trade-off Between Proximity and Concentration

"A Simple Theory of Multinational Corporations and Trade With a Trade-off Between Proximity and Concentration" presents an economic model analyzing the strategic decisions of multinational corporations in the context of international trade. Authored by Lael Brainard of the Sloan School of Management, this study explores the balance between locating production near consumers (proximity) and concentrating production in fewer locations to exploit economies of scale. The work provides valuable insights into the factors driving foreign direct investment and the structure of global production networks. It remains relevant for economists and business strategists interested in understanding the complex dynamics of multinational enterprises and their impact on international trade patterns.

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