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- Title
INTERNATIONAL INVESTMENT AND INTERNATIONAL TRADE IN THE PRODUCT CYCLE.
- Authors
Vernon, Raymond
- Abstract
This article explores the changes in international trade and investment. The author assumes that the enterprises in any one of the advanced countries of the world are not distinguishedly different from those in any other advanced country in terms of access to scientific knowledge and capacity to comprehend scientific principles. According to the hypotheses of the research, the investment will occur in industries which require significant labor inputs in the production process. The assumptions that capital costs come high in the less-developed countries requires a number of fundamental qualifications. The author argues that the assumption that finance capital is scarce and that interest rates are high in a less-developed country may prove inapplicable to the class of investors.
- Subjects
INTERNATIONAL trade; FOREIGN investments; PRODUCTION (Economic theory); INTERNATIONAL markets; DEVELOPED countries; CAPITAL investments
- Publication
Quarterly Journal of Economics, 1966, Vol 80, Issue 2, p190
- ISSN
0033-5533
- Publication type
Article
- DOI
10.2307/1880689