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This paper tests for certain benefits of foreign direct investment in the manufacturing sectors of two leading host countries---Canada and Australia. A quest for evidence on the effects of the multinational corporation needs little defense at a time when host and source countries alike incline towards restricting its activities. Economic theory tells us that intramarginal[2] gains from foreign investment take diverse forms. An evident and tangible gain to the host government stems from the corporate income tax collected from subsidiaries (net of the incremental cost of public services supplied to them). Other benefits, conjectural and elusive but possibly large, lie in the effects of direct investment on the value productivity of resources owned by the host economy (Macdougall, 1960; Corden, 1967; Caves, 1971). The host nation's private sector does not benefit directly because the foreign subsidiary is efficient, or brings to its shores skilled entrepreneurship or productive knowledge. Rather its gains depend on spill-overs of productivity that occur when the multinational corporation cannot capture all quasi-rents due to its productive activities, or to the removal of distortions by the subsidiary's competitive pressure. These potential benefits can be divided into three classes. [ABSTRACT FROM AUTHOR]

This article presents information on books and articles related to public relations. Canada's policies toward foreign capital and the proposed U.S. equalization tax are discussed in the book "Foreign Ownership: Is Canadian Concern Sense or Sentiment?" by George Cretzianu. Canada is urged to stick to its old policy of welcoming foreign capital. A report on a poll taken in Glenelg, South Australia, is presented in the book "Winning a Local Option Poll," on the building of new hotels and on how the voters were encouraged both to vote and to vote "Yes" by a public relations program. Other books are: "The Dynamics of Nationalism," "The Human Dimension in International Relations," "Bridges of Human Understanding," etc.