Does Foreign Direct Investment Theory Reflect Reality the Case of the American

Cover Does Foreign Direct Investment Theory Reflect Reality the Case of the American
Does Foreign Direct Investment Theory Reflect Reality the Case of the American
Jan Hack Katz
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L-. E to the perception of TT products as essential, it i^ay be that the subject firms are more likely to face price controls than are the control ^roup of firms. If this is the case, foreign profit levels could be expected to be less than those in the United States. Unlike the case in which domestic competitors can drive out inefficient foreign firr. S through price competition, the existence of price controls would lower profits to all firms and perhaps preclude effective competition. Intervi...ews indicated that this was not a significant problem for subject firms, but a comparison was still made to another industry that is severely affected by price controls, the pharmaceutical manuracLurors. Ahaos- <. verv="" major="" market="" for="" ethical="" druu.="" s="" l="">as some form of price control, but need that cause ai, overwhe Irving affect on the success index?^ A. Calcul . Ted for a gro. P of thirteen multinational pharmaceutical compaviies, the average index level was found to he 0. 95 + 0. 023. The difference between the means of the food and the ethical drug producers is statistically significant at the 0.

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