Foreign Multinational Investment in the United States

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?Gordon and Lees deal with the trade deficit and the rapid rise of foreign direct investment in the US. These are interrelated problems and are inseparable from many other elements in the economy such as interest rates, exchange rates, price levels, and productivity. Much of the book is about the steel and automotive industries. As for steel, the present program of restricting imports puts a very costly burden on the consumer. The authors suggest that government deal with the need for capital to upgrade their backward steel plants. The automobile analysis criticizes the voluntary agreement policy and offers a modified domestic content program. The authors endorse free trade and an open-door policy for foreign investment as desirable goals. They propose a new agency responsible to the president to develop and coordinate foreign investment policy. Discussion of a subject is often in a fairly summary form as in the macroeconomic section. ... Advanced undergraduate and university programs.?-Choice

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