Location Decisions of Multinational Enterprises

Abstract

Abstract

One of the basic areas of international trade theory is production decisions of Multinational Enterprises (MNEs). MNEs stay on the focus of current international politics and international economic relations. MNEs, as one of the building blocks of economic integration, constitute both push and pull strategies of integration.

The world is evolving towards a more conservative structure day by day in the aspect of economic. Neo-liberal policies leave place to to protectionism increasingly. Under these circumstances, location decisions made by MNEs which are determinants of global production and investment, and the policies of host countries give direction to economic gains.

The study is based on systematization of location decisions that MNEs will take in both production and investment points by using literature review technique. To this end, the causes and effects of firm, industry and country specific location decisions of MNEs are discussed and the results are categorized on the basis of cause-effect relationships. The theoretical substructure which is obtained with this study will be input for future empirical studies.

Keywords: Multinational Enterprises, Location Decisions, International Trade