The Allocation and Motivation of Japanese and U.S. Foreign Direct Investment in an Economically Integrated Area: The Case of the European Union‪.‬

Introduction Regional economic integration has increased significantly over the past two decades, accelerating the free movement of production factors across national boundaries and negating theories of international trade based on immobile factors. These effects could be major reasons behind changes in the allocation and motivation of multinational enterprises' foreign production activities. Exploring the effects of regional economic integration on foreign production by nonmember multinationals within an economically integrated area could shed considerable light on the effects of such integration on foreign direct investment (FDI) by multinationals.