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World Investment Report 1995

Transnational Corporations and Competitiveness

image of World Investment Report 1995

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.

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Expanding market access

The economic performance of countries depends not only upon their capacity to produce goods and services, but also upon their ability to utilize that capacity in the best possible manner. Consequently, countries are not only interested in acquiring access to resources for strengthening their production capabilities, but also in obtaining markets for their goods and services that are sufficiently large and wide to enable them to exploit their resources fully and efficiently. This is most directly evident in the importance attached to international trade, which allows countries to access markets beyond their national boundaries and gain from increased specialization and improved resource allocation.

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