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Transnational Corporations and Developing Countries

In: Trade and Development Policies

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  • Alexander J. Yeats

Abstract

International trade theory rests on several strict assumptions concerning the nature of this exchange and conditions in domestic and international markets. For example, the classical model of trade according to comparative advantage is based on a two-commodity, two-factor, two-country world with full employment, identical production functions, and perfect competition in both domestic and international markets. Given these conditions it was demonstrated that both countries will be better off with free trade or, at the least, one country will be better off while the other’s position would not deteriorate.

Suggested Citation

  • Alexander J. Yeats, 1981. "Transnational Corporations and Developing Countries," Palgrave Macmillan Books, in: Trade and Development Policies, chapter 5, pages 91-120, Palgrave Macmillan.
    • Handle: RePEc:pal:palchp:978-1-349-16585-8_5
    DOI: 10.1007/978-1-349-16585-8_5
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