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International Market Structuring with a Multinational Enterprise

Author

Listed:
  • Ahn, Sukwhan

    (Sookmyung Women’s University)

  • Soo Kan, In

    (Sookmyung Women’s Unive)

Abstract

This paper examines the economic rationales and conditions for the emer - gence of multinational enterprises (MNEs). Promoting production efficiency is not sufficient to justify the emergence of an MNE. With taxes in the model, tax authorities heavily tax an MNE’s economic activities, in which case an MNE becomes harder to justify on welfare grounds. This arises from the public good nature of MNEs and suggests a tax policy coordination to foster welfare improvement through the emergence of MNEs.

Suggested Citation

  • Ahn, Sukwhan & Soo Kan, In, 1997. "International Market Structuring with a Multinational Enterprise," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 12, pages 242-258.
    • Handle: RePEc:ris:integr:0049
    as

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    More about this item

    Keywords

    International; Market; Structuring;
    All these keywords.

    JEL classification:

    • D43 - Microeconomics - - Market Structure, Pricing, and Design - - - Oligopoly and Other Forms of Market Imperfection
    • F23 - International Economics - - International Factor Movements and International Business - - - Multinational Firms; International Business
    • H21 - Public Economics - - Taxation, Subsidies, and Revenue - - - Efficiency; Optimal Taxation

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