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World Investment Report 2002

Transnational Corporations and Export Competitiveness

image of World Investment Report 2002

This report is recognized worldwide as an authoritative source of information and analysis on foreign direct investment. This year’s Report focuses on the role of transnational corporations (TNCs) in the export competitiveness of developing countries. It analyzes the latest trends in international trade, and identifies the countries and sectors in which TNCs have driven export performance. Relevant strategies and policy options for developing countries are presented to help attract export-oriented FDI and benefit from it.

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Conclusions: Benefiting from export competitiveness

Improving export competitiveness is important and challenging but it is not an end in itself. It is only a means to an end: the promotion of development. This raises the question of the benefits resulting from TNC-associated trade, beginning with improving the trade balance, and continuing with upgrading export operations and sustaining them over time. In each case, the issue is how host developing countries can most benefit from the assets that TNCs command. Much depends on the strategies pursued by TNCs within their international production systems, on the one hand, and local infrastructure and technological, institutional and supplier capabilities as well as the policies pursued by Governments, on the other.

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