ABSTRACT
I INTRODUCTION In the previous chapter, I identified the characteristics of two different methods or styles of foreign direct investment: the Japanese style compared with the American style, or tradeoriented versus anti-trade-oriented direct investment.1 Since the difference has important implications for the role of foreign direct investment and its effects upon international trade expansion, it deserves theoretical elaboration through the construction of a model analysing the effects of each type of investment. This is the first task of the present chapter (Sections II to IV).
