Overview

Enabled by increasingly liberal policy frameworks, made possible by technological advances, and driven by competition, globalization more and more shapes today’s world economy. Foreign direct investment (FDI) by transnational corporations (TNCs) now plays a major role in linking many national economies, building an integrated international production system — the productive core of the globalizing world economy. Transnational corporations deploy their tangible and intangible assets (capital, research-and-dcvelopment capacity and technology, organizational and managerial practices, trade links), with a view towards increasing their competitiveness and profitability. At the same time, the deployment of these assets by firms strengthens the resource base of countries and their capacity to produce, to reach and expand markets for their products and to restructure their economies - in brief, to improve their overall economic performance. To link the increased competitiveness of TNCs to the economic performance of host and home countries as closely as possible poses a challenge for policy makers. These developments and issues arc the particular theme of the World Investment Report 1995.

Sustainable Development Goals:

Decent Work and Economic Growth