DISCUSSION.

This article presents a discussion of a paper that examined the market values of multinational corporations. In the paper the authors stated that shares in U.S. multinational firms should sell at a premium in relation to the price of shares for domestic firms, after adjusting for risk. The author examines the foundation of this statement and questions why more multinational firms are not started if their shares sell at premiums. The author also calls into the question their analysis of the investment flows in multinationals corporations.