Table of contents for Foreign direct investment : theory, evidence, and practice / Imad A. Moosa.

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1 Introduction and Overview                                1
  What is foreign direct investment?                      1
  Types of FDI                                            4
  What are multinational corporations?                    6
  Approaches to international business                   11
  History of FDI                                         16
  Recent trends                                          18
2 Theories of Foreign Direct Investment                   23
  Theories assuming perfect markets                      24
  Theories assuming imperfect markets                    29
  Other theories of foreign direct investment            42
  Theories based on other factors                        50
  Theories of entry modes                                58
  A final remark                                         62
3 The Effects of Foreign Direct Investment                68
  The provision of capital                               71
  The effect of FDI on output and growth                 73
  The effect of FDI on employment and wages              77
  The balance of payments effect                         82
  The effect of FDI on trade flows                       84
  The effect of FDI on productivity                      86
  FDI and technology                                     86
  FDI and training                                       90
  FDI and inter-industry linkages                        91
  The effect of FDI on market structure                  92
  FDI and the environment                                93
  Modelling the effects of FDI                           95
  A final remark                                         98

4 International Capital Budgeting                        102
  Which perspective?                                    104
  The net present value                                 106
  The adjusted present value (APV)                      116
  Further extensions of the APV formula                 119
  Adjusting project assessment for risk                 120
  Other project evaluation criteria                     124
  Capital budgeting for international acquisitions
  and divestitures                                    128
  Where to go from here?                                130
5 Country Risk and Political Risk                        131
  Country risk, sovereign risk and political risk       131
  Country risk assessment                               134
  Quantifying country risk                              138
  An example of macro-assessment:
  the Euromoney methodology                           142
  The use of country risk analysis                      145
  Political risk: the definition once more              148
  Political risk indicators                             152
  The effects and management of political risk          155
  A final remark                                        160
6 International Taxation                                 161
  The philosophy of national tax systems                162
  Types of taxes                                        165
  The avoidance of double taxation                      166
  Tax havens                                            168
  Tax planning in the international environment         173
  Tax incentives and competition                        179
  Globalization, the Internet and taxation              182
  A final remark                                        187
7 The International Cost of Capital and Capital Structure  188
  The cost of capital and investment decisions          190
  The weighted average cost of capital                  191
  Implications of using the cost of capital as a discount rate  193
  The cost of capital of MNCs                           195
  Domestic currency versus foreign currency financing   199
  CAPM and the cost of capital                          206
  The cost of capital across countries                  210

  Choosing the capital structure                      215
  More about the choice of capital structure          217
  A final remark                                      220
8 Transfer Pricing                                     221
  The definition and determinants of transfer pricing  221
  The techniques of setting transfer prices           229
  A formal exposition of the effects of transfer pricing  233
  Regulation and the manipulation of transfer prices  238
  A final remark                                      241
9 Control and Performance Evaluation in MNCs          243
  Organizational aspects of MNC behaviour             243
  Definition of control in MNCs                       244
  Centralized versus decentralized cash management    247
  Empirical studies of the control function           249
  Performance evaluation in MNCs                      250
  Evaluation of domestic and foreign operations       252
  Measures of performance                             258
  Budgeting for global operations                     262
  A final remark                                      264
10 Summary and Conclusions                             265
  Recapitulation                                      265
  What motivates FDI?                                 267
  FDI and MNCs: the arguments for and against         270
  The verdict                                         273