The discussion about the role of multinational enterprises (MNE) which are transferring their technology to undeveloped and developed countries is one of the most interesting discussions in the international trade theory with its authors in the century of globalisation. Multinational Enterprises are generating and transferring technology know-how, knowledge and innovations of products and processes over national borders to foreign countries for making research and development (R&D) in especially chosen R&D locations. The focus of the following diploma thesis is to search what kind of role multinational enterprises play in a globalised and internalized world by focussing how they make research and development in foreign countries and especially in developing countries as the third world.
In the first main part of the following work it will be described what kind of role multinational enterprise play in the century of globalisation. For a better understanding it follows a description what is exactly meant by the process of internalization of the markets and R&D. It will be discussed through theoretical analysis and models how the process to an internalization of R&D function. These will be explained through different theoretical approaches as the horizontal model of James R. Markusen , the vertical model of Helpman and a model of regression which used independent and dependent variables for the analysis. At least in this chapter the specific features of a MNE will be explained by categorising multinational enterprises through different characteristics and afterward the role of MNE in the process of globalisation will be assumed for the international trade between different countries.
The second part will be searching what kind of motives exists for multinational firms to outsource their R&D activities in foreign countries. For this, it is important to say exactly what kind of factors the chose of a location influence. Another interesting point is to analyse what kind of different variation of strategy MNE need and try to follow, especially to define what the goal of MNE is and how they can make benefit through FDI. Furthermore it will be explained the RTA-Index of the company in the domestic market and of the country of destination. In this case it will be assumed what a high or low RTA-Index indicates for companies who want to realise investments in foreign countries.
Inhaltsverzeichnis (Table of Contents)
- 1 Introduction
- 2 Globalisation and the Role of Multinational Enterprises
- 2.1 Internalisation of the Markets and Internalisation of R&D
- 2.2 Theoretical Approaches
- 2.2.1 The Horizontal Model of James R. Markusen
- 2.2.2 The vertical model of Helpman
- 2.3 Multinational Enterprises (MNE)
- 2.3.1 Specific Features of Multinational Enterprises
- 2.3.2 Dependent and Independent Variables in Models of Regressions
- 3 Research and Development of MNE in Foreign Countries
- 3.1 Motives for R&D in foreign countries
- 3.2 Choice of Location for R&D
- 3.2.1 Home-base-exploiting (HBE)
- 3.2.2 Home-base-augmenting (HBA)
- 3.2.3 Technology-seeking
- 3.2.4 Market-seeking
- 3.3 RTA-Index
- 3.3.1 HomeRTA
- 3.3.2 HostRTA
- 3.4 Advantages and Preconditions of R&D Activities in Foreign Countries
- 3.4.1 The OLI Framework of John Dunning
- 3.5 The Impact of Foreign Investment on Host Countries
- 3.5.1 The Approaches of Hymer and MacDougall
- 3.6 Transfer and Diffusion of Technology and Knowledge through FDI
- 3.6.1 Two Processes of Technological Change
- 3.6.2 Invention, Innovation and Diffusion
- 3.7 The Role of Spillovers in the Process of Technology Transfer and for FDI
- 3.7.1 The Spillover Effect
- 3.7.2 Case Study about the Costs and Benefits of FDI
- 3.8 Economical and Political Determinants of FDI in Developing Countries
- 3.8.1 The four competing Models
- 3.8.2 The Hypothesis of the Models
- 3.8.3 The Results of the Four Competing Models
- 4 Different Models of International Trade with Technology Transfer and R&D Activities in Host Countries
- 4.1 Model of Innovation – the Model of North-South Trade
- 4.1.1 Implication of the Model of Innovation
- 4.1.2 Adoption of the Model of North-South Trade
- 4.2 The Model of Innovation and Technology Transfer
- 4.3 Conclusion for the Model of Innovation with Technological Transfer
- 4.4 Multinational R&D Cooperation in Developing Countries
- 4.4.1 The Theoretical Choice Model of Navaretti and Carraro
- 4.4.2 Structure of the Game
- 4.4.3 Stages of the Game
- 4.4.4 The Propositions of the Model
- 4.4.5 The Empirical Analysis of the Model
- 4.4.5 Results and Relevance of the Game and the Empirical Analysis
- 4.5 Comparison of the Three Different Models and Conclusion for R&D of MNE
- 5 R&D Activities of MNE in Foreign Countries and in Germany
- 5.1 Research and Development of German MNE in Foreign Countries
- 5.1.1 Expenditures of R&D in Foreign Countries
- 5.1.2 Important Location for R&D Expenditures
- 5.1.3 The Emphasis of the Branch of Business of German MNE
- 5.2 Research and Development of Foreign MNE in Germany
- 5.2.1 Expenditures of R&D and Potentials of R&D in Germany
- 5.2.2 Germany A Research Location
- 5.3 The Technological Efficiency of a Country
- 6 Summary
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This diploma thesis examines the role of multinational corporations (MNCs) in international trade and technology transfer. It aims to analyze theoretical models of international trade that incorporate technology transfer and R&D activities in host countries, and to compare these models with empirical evidence. The study also investigates the R&D activities of German MNCs abroad and foreign MNCs in Germany.
- The role of multinational enterprises in international trade and technology transfer.
- Theoretical models of international trade incorporating technology transfer and R&D.
- Location choices for R&D activities by multinational enterprises.
- The impact of foreign direct investment (FDI) on host countries.
- Technology spillovers and their role in technology transfer.
Zusammenfassung der Kapitel (Chapter Summaries)
Chapter 1 provides an introduction to the topic. Chapter 2 explores globalization and the role of multinational enterprises, examining theoretical approaches and specific features of MNCs. Chapter 3 delves into the research and development (R&D) activities of MNEs in foreign countries, including motives, location choices, and the impact of FDI on host countries. It also discusses technology transfer and the role of spillovers. Chapter 4 analyzes different models of international trade with technology transfer and R&D activities, including the model of innovation and the theoretical choice model of Navaretti and Carraro. Chapter 5 focuses on R&D activities of German MNEs in foreign countries and foreign MNEs in Germany.
Schlüsselwörter (Keywords)
International trade, multinational corporations, technology transfer, foreign direct investment (FDI), research and development (R&D), location choice, technology spillovers, theoretical models, empirical analysis, Germany.
- Quote paper
- Janine Körner (Author), 2007, International Trade - Multinational corporations and technology transfer, Munich, GRIN Verlag, https://www.grin.com/document/120294
