U.S. And Swedish Direct Investment and Exports
46 Pages Posted: 6 Apr 2007 Last revised: 23 Oct 2010
Date Written: September 1987
Overseas production in a country by affiliates of Swedish and U.S. firms rarely appears to displace exports from the two home countries and in most cases either has no effect or tends to increase home country exports. The positive effect on Swedish exports is evident not only with respect to levels of exports to different countries at one time but also with respect to changes in exports over time. The positive effect on U.S. exports can be observed for minority-owned as well as majority-owned foreign operations.
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