Multinationale Unternehmen: Vertikale versus horizontale Integration

The enormous increase in foreign direct investment (FDI) by multinational corporations (MNCs) over the past twenty years is one of the most evident signs of the globalization of the world economy. Foreign direct investment has become the most important component of private capital flows between countries. Due to the immense economic integration worldwide, which has eliminated many trade barriers and obstacles to international investment, more and larger multinational companies have emerged. According to the World Bank, the volume of foreign direct investment grew from approximately $55 billion in 1985 to $573 billion in 2003, with a peak of $1,511 billion in 2000. This fact has led economists to develop an increasing interest in the causes and consequences of these developments and to seek reasons more intensively.