World Investment Report 1995

Transnational Corporations and Competitiveness

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This fifth edition of the World Investment Report (WIR) documents the continuing growth of foreign direct investment (FDI) in developing countries. It analyzes the impact of FDI on the competitiveness of both developed and developing countries. The Report also discusses the policy implications for the enabling environment to promote inward as well as outward FDI and the key issues to be taken into account in multilateral negotiations. For the first time, WIR indexes transnationality that takes into account the respective shares of foreign assets, foreign sales and foreign employment of TNCs.



Policies on outward foreign direct investment

Government policies towards outward foreign direct investment (FDI) have received little attention compared to many analyses of policies towards inward FDI. In an increasingly globalized economy, however, outward FDI emerges as a critical option for corporate strategies to enhance enterprise competitiveness and national performance. A number of governments now recognize this. Consequently, they have liberalized -- or are liberalizing — outward FDI restrictions. This chapter examines the recent liberalization of policies regulating outward FDI, as well as initiatives to promote it. These changes introduce new elements in an evolving international framework for FDI, suggesting a possible expansion of common interests and perspectives among all groups of countries.


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