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This chapter provides a formal analysis of the economic welfare effects for large and small partners to free trade agreements. Michaely (1998) has demonstrated that large country welfare is U-shaped in the small country's size. I derive the welfare for the large country for all possible small country sizes, and show that the maximum possible loss for the large country is twice its tariff revenue. I identify the data necessary to estimate the welfare effects and consider how initial trade volumes, tariffs, and international price differences affect the large country's welfare.

This study examines the cross‐autocorrelation of size‐based portfolio returns in a sample of 15 major European markets using daily data from January 1990 through December 1999. Previous studies have primarily used U.S. data. This study extends previous research by considering results in multiple European exchanges. We examine whether a difference in size‐based portfolios exists by testing cross‐autocorrelation, granger‐causality, and asymmetric responses in the European markets. The results confirm that large stock portfolio returns lead small stock portfolio returns in most European countries, and that cross‐autocorrelation is present both within and between European financial markets.

This paper examines the effects of foreign debts on the economic performance of small countries. Forty‐eight small countries, each with a population of approximately five million, have been desegregated according to their per capita income and geographical location. The groups in question include Africa, the Caribbean region, Latin America, the Middle East, and Europe. Using correlation analysis, analysis of variance, and multiple comparison procedure, the collected data on fourteen economic indicators for each group of countries were analyzed. It was found that the economic effects of external debt varied among countries not only on the basis of their income level, but also on the basis of their geographical locations. Middle Eastern and European countries, being more prosperous, were able to maintain a relatively lower external debt to export ratio and thus were able to attain better economic accomplishments as compared to the poorer nations such as those in Africa, Latin America, and the Caribbean region. Within this latter group, those countries which were able to borrow more in relation to their GDP were able to perform better as far as their export, import, and government expenditures are concerned.

Aim of the present monograph is the economic analysis of the role of MNEs regarding globalisation and digital economy and in parallel there is a reference and examination of some legal aspects concerning MNEs, cyberspace and e‐commerce as the means of expression of the digital economy. The whole effort of the author is focused on the examination of various aspects of MNEs and their impact upon globalisation and vice versa and how and if we are moving towards a global digital economy.

Foreign direct investment (FDI) from developing economies has increased sharply since the beginning of the 2000s. While most investment flows correspond to firms from large economies, small developing economies have also witnessed the increase of outward investment flows from their domestic companies. The literature on outward FDI (OFDI) from developing economies has focused mainly on large emerging countries, such as China and India. In the case of small developing economies, for which there is scant empirical evidence, firms willing to invest abroad face a different business environment with several barriers such as a small domestic market to achieve economies of scale and a limited supply of specialised resources. In this setting, the purpose of this paper is to examine firm-level strategies and the home-country effects in a small developing economy.

A research case study is conducted through a representative sample of Costa-Rican firms investing abroad. Costa Rica makes a strong case since it stands out among small developing economies investing abroad in terms of both the number of operations and the amount of OFDI.

The main findings are: outward investment is not only for large and mature firms, as medium and small-sized firms are actively investing abroad; most firms pursue a market-seeking strategy; the benefits for the firm and the home country are stronger when companies follow a clear outward investment strategy; and there is a positive relationship between international trade and OFDI.

This paper provides novel empirical evidence to better understand an emerging trend in OFDI: in an increasingly integrated world economy, even SMEs from small developing economies are compelled to internationalise their operations in order to compete successfully.

This paper aims to examine the hypotheses of main international theories (realism, liberalism and constructivism) and the development of these theories toward the behavior of foreign policy of small states in the developing world. The theories of international relations, especially the realistic theory, face a theoretical debate and a fundamental criticism. The hypotheses of these theories are not able to explain the external behavior of some small states, especially those in the developing world such as Qatar. In particular, these small states do not have the elements of physical power through which they can play this role. However, they are based on the internal determinants (such as political leadership and the variable of perception) and non-physical dimensions of power to play an effective and influential external role.

This topic sheds light on the hypotheses of theories of main international relations, which explain the behavior of foreign policy of small states. This is due to the increased number of such states after the disintegration of Soviet Union, the practice of some countries an effective foreign role and the transformation of the concept of power from the hard power to soft power, and then to smart power

The theories of international relations, especially the realistic theory, face a theoretical debate and a fundamental criticism. The hypotheses of these theories are not able to explain the external behavior of some small states, especially those in the developing world such as Qatar. In particular, these small states do not have the elements of physical power through which they can play this role. However, they are based on the internal determinants (such as political leadership and the variable of perception) and non-physical dimensions of power to play an effective and influential external role.

The importance of the study comes from its interest in small countries in general and the Qatar situation in particular. The small country emerged as a player independent of the Gulf Cooperation Council, unlike what prevailed before, which led to the discussion of a regional role for Qatar despite its small power compared to the strength and size of other factions in the region such as Turkey, Israel and Iran.