ABSTRACT
This chapter discusses the analysis of the relationships between antitrust law and intra-industry direct foreign investment (IDFI), by providing some insights into the types of cause and effect relationships which might exist between these two market forces. The question of how antitrust law and IDFI interact arose naturally from early economic research on the characteristics of DFI. The interaction between IDFI and antitrust law is not only reflected in the effect IDFI has on antitrust enforcement efforts, but is also reflected in the effect antitrust law has on IDFI activity. While the strength of the interaction remains to be shown, there may be significant links between antitrust law and IDFI. Horizontal, vertical and conglomerate mergers may be attacked under antitrust law. Joint ventures can be attacked under various antitrust statutes. The prohibitions against anticompetitive conduct contained in US antitrust laws apply not only to trade within the United States, but to foreign trade as well.
