Dynamics of Investment in Production Facilities Abroad

  • Carl H. McMillan
Part of the Trade Policy Research Centre book series (TPRC)


Ideological principles, political considerations and financial constraints have all served to impede foreign investment in what, in socialist parlance, is called the ‘sphere of material production’. None the less, the capital of Comecon multinational enterprises has by no means been limited to the service sector. All of the Comecon countries except the German Democratic Republic have increasingly invested in production facilities abroad, in both the West and the South.


Foreign Market Production Facility Multinational Enterprise German Democratic Republic Fishing Operation 
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Notes and References

  1. 1.
    The process elsewhere has been analysed especially in terms of Swedish experience. See S. Carlson, ‘Company Policies for International Expansion: the Swedish Experience’, in T. Agmon and C. Kindleberger (eds), Multinationals from Small Countries (Cambridge, Mass.: MIT Press, 1977) pp. 50–7Google Scholar
  2. and B. Swedenborg, The Multinational Operations of Swedish Firms: an Analysis of Determinants and Effects (Stockholm: Industrial Institute for Economic and Social Research, 1979).Google Scholar
  3. For more general discussion, see C. Michalet, Le Capitalisme Mondial (Paris: Presses Universitaires de France, 1976) pp. 131 and 167 et seq.Google Scholar
  4. 2.
    The Western literature has recently been surveyed by R. E. Caves, Multinational Enterprise and Economic Analysis (Cambridge University Press, 1982). On these points, see especially his Chapters 2 and 3. For a different perspective, see Michalet, Le Capitalisme Mondial, ibid.Google Scholar
  5. 3.
    Avtoexport has 95 per cent of the equity in the Finnish company. For a more detailed case study of Konela, see McMillan, Direct Soviet and East European Investment in the Industrialized Western Economies (Ottawa: Institute of Soviet and East European Studies, Carleton University East-West Commercial Relations Series, No. 7, February 1977, pp. 59–60.Google Scholar
  6. 25.
    See J. Martens, ‘Likelihood of Communist Joint Ventures Inside the US Fishery Conservation Zone’, (US Department of Commerce, Bureau of East-West Trade, May 19, 1978) (mimeograph).Google Scholar

Copyright information

© Carl H. McMillan and the Trade Policy Research Centre 1987

Authors and Affiliations

  • Carl H. McMillan
    • 1
  1. 1.Carleton UniversityOttawaCanada

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