How good are multinationals for you?

The expanded presence of multinational enterprises in the world raises questions about how a country benefits from foreign direct investment. Kasper Vrolijk looks at global value chains (firms organising production across multiple countries) and “superstar firms”, those accounting for a large share of overall economic activity, with market concentration. He suggests that governments might have to adopt firm-specific policies, weighing the benefits and drawbacks of providing subsidies to attract multinationals.