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United Nations Conference on T rade and Development Trade World Investment Report 1999 Foreign Direct Investment and the Challenge of Development United Nations New Y ork and Geneva, 1999 York Note UNCTAD serves as the focal point within the United Nations Secretariat for all matters related to foreign direct investment and transnational corporations In the past, the Programme on Transnational Corporations was carried out by the United Nations Centre on Transnational Corporations (1975-1992) and the Transnational Corporations and Management Division of the United Nations Department of Economic and Social Development (1992-1993) In 1993, the Programme was transferred to the United Nations Conference on Trade and Development UNCTAD seeks to further the understanding of the nature of transnational corporations and their contribution to development and to create an enabling environment for international investment and enterprise development UNCTAD's work is carried out through intergovernmental deliberations, technical assistance activities, seminars, workshops and conferences The term “country” as used in this study also refers, as appropriate, to territories or areas; the designations employed and the presentation of the material not imply the expression of any opinion whatsoever on the part of the Secretariat of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries In addition, the designations of country groups are intended solely for statistical or analytical convenience and not necessarily express a judgement about the stage of development reached by a particular country or area in the development process The following symbols have been used in the tables: Two dots ( ) indicate that data are not available or are not separately reported Rows in tables have been omitted in those cases where no data are available for any of the elements in the row; A dash (-) indicates that the item is equal to zero or its value is negligible; A blank in a table indicates that the item is not applicable, unless otherwise indicated A slash (/) between dates representing years, e.g., 1994/95, indicates a financial year; Use of a hyphen (-) between dates representing years, e.g., 1994-1995, signifies the full period involved, including the beginning and end years Reference to “dollars” ($) means United States dollars, unless otherwise indicated Annual rates of growth or change, unless otherwise stated, refer to annual compound rates Details and percentages in tables not necessarily add to totals because of rounding The material contained in this study may be freely quoted with appropriate acknowledgement UNITED NATIONS PUBLICATION Sales No E.99.II.D.3 ISBN 92-1-112440-9 Copyright © United Nations, 1999 All rights reserved Manufactured in Switzerland ii Preface In 1945 our founders enshrined the promotion of economic development and the improvement of the quality of life for people in all countries as fundamental objectives of the United Nations Since then, countries have worked together to achieve these objectives and many of them have made great progress Even so, the gap between developing and developed countries, and between rich and poor within many countries, remains as wide as ever In some respects, it is growing even larger Achieving sustainable and equitable development thus remains the unfinished task of the twentieth century The central role in fulfilling this task must be played by the people of each country, through private enterprise and public organization at the local and national levels But a very important role can also be played by foreign direct investment (FDI) – increasingly so, as the world economy becomes more global and new technology is ever more essential to economic growth Each year, the World Investment Report examines issues related to foreign direct investment This year ’s edition looks specifically at the impact of such investment on key aspects of economic development – increasing financial resources, enhancing technological capabilities, boosting export competitiveness, generating and upgrading employment, and protecting the environment The first message that emerges is that, while FDI can indeed contribute to economic growth and development, it is not a panacea It can complement and catalyse economic activities and the performance of domestic enterprises, but in some circumstances it may also hinder them Another message of the report is, therefore, that public policy does matter, at the national and the international levels It is important in creating the conditions that attract foreign direct investment And it is important for enhancing its benefits To promote the development of their own countries, Governments need to maximize the positive contribution that foreign direct investment can make to development, and to minimize any negative effects it may have While the primary responsibility for development rests with national Governments, corporations also have a responsibility, not only to their shareholders but to society at large One of the challenges for the future is precisely to encourage firms to assume this responsibility more forcefully The report’s focus on foreign direct investment and development is particularly timely, as it comes shortly before several important events in the year 2000 intended to advance the cause of development: UNCTAD X in February in Bangkok, the South Summit of the Group of 77 in Havana in April, and the United Nations Millennium Summit and Assembly in New York in the autumn I hope the report will contribute to the deliberations at these events, and help to bring about an improved understanding of development-related processes and policies that are essential if the twenty-first century is to complete – as it must – the unfinished task of the twentieth Kofi A Annan Secretary-General of the United Nations New York, July 1999 iii Acknowledgements The World Investment Report 1999 was prepared by a team led by Karl P Sauvant and comprising Victoria Aranda, Bijit Bora, Persephone Economou, Masataka Fujita, Boubacar Hassane, Kálmán Kalotay, Gabriele Köhler, Padma Mallampally, Anne Miroux, Ludger Odenthal, Juan Pizarro, Marko Stanovic, James Xiaoning Zhan and Zbigniew Zimny Specific inputs were received from Mehmet Arda, Mattheo Bushehri, John Gara, Khalil Hamdani, Mongi Hamdi, Anna Joubin-Bret, Assad Omer, Olle Östensson, Pedro Roffe, Taffere Tesfachew and Katja Weigl The work was carried out under the overall direction of Lynn K Mytelka Principal research assistance was provided by Mohamed Chiraz Baly, Lizanne Martinez, Bradley Boicourt and Janvier Usanase Research assistance was provided by Nelly Berthault and John Bolmer A number of interns assisted with the WIR99 at various stages: Skadi Falatik, Carlijn Lahaye and Makamona Didier Nsasa The production of the WIR99 was carried out by Jenifer Tacardon, Irenila Droz, Mary McGee, Florence Hudry, Bartolomeo D’Addario and Atsedeweyn Abate Graphics were done by Diego Oyarzun-Reyes It was desktop-published by Teresita Sabico The Report was edited by Peter Sutcliffe Sanjaya Lall was the principal consultant and adviser to Part Two of WIR99 Experts from within and outside the United Nations provided inputs for WIR99 Major inputs were received from Manuel R Agosín, Douglas van den Berghe, Roland Brown, Jaime Crispi, Michel Delapierre, John M Kline, Donald J Lecraw, Robert E Lipsey and Peter Nunnenkamp Inputs were also received from Thomas G Aquino, Peter Brimble, Jenny Cargill, Daniel Chudnovsky, Edward Dommen, Peter Eigen, Magnus Ericsson, Torbjörn Fredriksson, Roger Frost, Adrian Henriques, Auret van Heerden, Brent Herbert-Copley, Joachim Karl, Georg Kell, Nagesh Kumar, Raymond J Mataloni Jr., Jacques Morisset, Sarianna Lundan, Sandro Orlando, Terutomo Ozawa, Jason Praetorius, Stephen Pursey, Shahra Razavi, Hans Schenk, Prakash Sethi, Peter de Simone, Devinda R Subasinghe, Carrie Smith, Meg Voorhes, Alyson Warhurst, Gerald T West, Obie G Whichard, Adrian Wood and Guoming Xian A number of experts were consulted on various chapters Comments were received during various stages of preparation (including during expert group meetings) from Abebe Abate, Lahcen Aboutahir, Teresa Andaya, Rasheed Amjad, Charles Arden-Clarke, Marino Baldi, Christian J Bellak, Emmanuel Boon, Eduardo Borensztein, David Boys, Steven Canner, John A Cantwell, Andrew Cornford, Janelle Diller, William A Dymond, Dieter Ernst, John Evans, Kimberly Evans, Anna Faelth, Arghyrios A Fatouros, Jarko Fidrmuc, Marlies Filbri, Al Frey, Rainer Geiger, Murray Gibbs, Harris Gleckman, Brewster Grace, Edward M Graham, Alicia Greenidge, Stephanie Hanford, Michael Hansen, Hans Havermann, Katharina Helmstedt, Amy Holman, Kirk F Hudig, Jan Huner, Gábor Hunya, Wee Kee Hwee, Veena Jha, Patrick Juillard, Dwight Justice, Hisao Kawabata, Mike Kelly, Stephen J Kobrin, Gloria-Veronica Koch, Ans Kolk, Mark Koulen, Christopher Lewis, Klaus M Leisinger, Klaus Lingner, Nick Mabey, Robert Madelin, Chris Marsden, Antonio Martins da Cunha Filho, Mina Mashayekhi, Jerry Matthews, Toshiko Matsuki, Thomas McCarthy, Eduardo J Michel, Peter Muchlinski, Victor Ognivtsev, Sven Östberg, Aurelio Parisotto, Sol Picciotto, Eric D Ramstetter, Mansur Raza, Prasada Reddy, Maryse Robert, Daniel Rodriguez, Miguel Rodriguez Mendoza, Pierre Sauvé, Mitsuharu Sawaji, Rupert Schlegelmilch, Marinus Sikkel, Anthony G Sims, John M Stopford, Anh Nga Tran-Nguyen, Ann Trebilcock, Rob van Tulder, Peter Utting, René Vossenaar, Douglas C Worth, Mike Wright, Simonetta Zarrilli and Michael Zammit-Cutajar Numerous officials of central banks, statistical offices, investment promotion agencies and other government offices, and officials of international organizations and non-governmental organizations, as well as executives of a number of companies, also contributed to WIR99, especially through the provision of data and other information The Report benefited from overall advice from John H Dunning, Senior Economic Advisor The financial support of the Governments of the Netherlands and Norway is gratefully acknowledged iv Table of Contents Contents Page Preface iii Overview xxi PAR T ONE ART TRENDS I GLOBAL TRENDS A Trends B Geographical and sectoral distribution 18 Geographical patterns of FDI a Regional distribution b FDI among developing countries Sectoral and industrial patterns of FDI 18 18 21 26 Notes 30 II REGIONAL TRENDS 33 A Developed countries 33 B Developing countries 45 C United States 33 European Union 38 Japan 42 Africa 45 Asia and the Pacific 52 Latin America and the Caribbean 61 Central and Eastern Europe 69 Notes 73 III THE LARGEST TRANSNA TIONAL CORPORA TIONS TRANSNATIONAL CORPORATIONS AND CORPORA TE STRA TEGIES 77 CORPORATE STRATEGIES A The largest transnational corporations 77 B The world’s 100 largest TNCs a Highlights b Degree of transnationality c Weight and economic significance of the 100 largest TNCs The 50 largest TNCs from developing countries The 25 largest TNCs from Central Europe 77 77 82 84 85 89 Cross-border M&As 94 Trends 94 a Sales 97 b Purchases 98 c Industry composition 99 Reasons 100 L World Investment Report 1999: For eign Dir Foreign Direct ect Investment and the Challenge of Development Page C Impact on development 101 Strategic partnering, M&As and their implications for the competitive environment 104 Concentration and the formation of traditional oligopolies 105 Stategic partnerships, M&As and the creation of knowledge-based networked oligopolies 107 Notes 112 IV IV INVESTMENT POLICY DEVELOPMENTS 115 A National policies 115 B Developments at the international level 117 Bilateral treaties 117 Regional developments 121 Developments in OECD 126 a Policy developments 126 b The MAI 128 (i) Objectives of the MAI 128 (ii) Main outstanding substantive issues 131 (iii) The broader political context 136 Multilateral developments 137 Civil society 139 Conclusions: lessons 141 Notes 143 PAR T TWO ART FOREIGN DIRECT INVESTMENT AND THE CHALLENGE OF DEVELOPMENT V THE CONTEXT AND ITS CHALLENGE 149 A The changing context of development 150 B The changing context for TNCs 153 C The challenge 154 Note 156 VI INCREASING FINANCIAL RESOURCES AND INVESTMENT 157 A The importance of investment for development 157 B The financial behaviour of TNCs 158 C The impact of FDI on financial resources and investment 160 LE Financial resources 160 Investment 167 a Direct impact 167 b Indirect impact: does FDI “crowd out” or “crowd in” domestic investment? 171 Table of Contents Page D Conclusions and policy implications 174 The framework 174 a The regulatory framework 174 b Contracts 177 Implementation 179 Promotion 182 Targeting 183 Notes 187 Annex to chapter VI Determining crowding in and crowding out ef fects 189 effects VII ENHANCING TECHNOLOGICAL CAP ABILITIES 195 CAPABILITIES A Technology echnology,, learning and development 195 B Technology generation and transfer: the role of TNCs 198 C FDI and developing countries: technology transfer transfer,, dif fusion and generation 207 diffusion D Technology generation 198 Technology transfer 203 Technology transfer 207 Technology dissemination and spillovers 210 a Linked economic agents 211 b Other firms and institutions 213 c Competing firms 214 Technology generation 215 Conclusions and policy implications 219 Transfer 223 Diffusion 225 Generation 226 The international dimension 227 Notes 228 VIII BOOSTING EXPOR T COMPETITIVENESS 229 EXPORT A The competitiveness challenge 229 B TNC strategies and role in trade 232 C The role of FDI in building export competitiveness 234 D Technology and trade patterns 234 Expanding market access for exports 240 a Advantages of TNCs 240 b Disadvantages of TNCs 241 c Non-equity links: some considerations 242 Building dynamic comparative advantages 244 Conclusions and policy implications 250 Notes 255 LEE World Investment Report 1999: For eign Dir Foreign Direct ect Investment and the Challenge of Development Page IX GENERA TING EMPLOYMENT AND STRENGTHENING GENERATING THE SKILLS BASE 257 A The importance of employment, employment quality and skills for development 257 B TNC strategies and their implications for generating employment and building skills 258 C FDI, employment and skills in host developing countries 261 D Employment generation 261 Employment quality 269 Upgrading skills 273 Conclusions and policy implications 277 Employment policies and instruments 278 a Employment creation 279 b Upgrading employment and skills 280 Industrial relations 284 Notes 286 X PROTECTING THE ENVIRONMENT 289 A The importance of the environment for development 289 B Environmental strategies of TNCs 292 C The impact of FDI on the environment in host developing countries 294 D An environmental profile of FDI 294 Environmental management and clean technology 299 Conclusions and policy implications 306 Admission and establishment 307 Operation 309 The international dimension 310 Notes 31 311 XI LEEE ASSESSING FDI AND DEVELOPMENT IN THE NEW COMPETITIVE CONTEXT 313 A The new competitive context 313 B FDI in developing countries 315 Introduction 315 What FDI offers 316 Policy issues 318 a The international investment process 318 b Domestic enterprise development and FDI 319 c Static versus dynamic effects 322 d Bargaining and regulation 324 Policy-making capacity 325 Table of Contents Page Note 328 Annex to chapter XI The impact of FDI on growth: an econometric test 329 Introduction 329 Overview of previous studies 329 a Long-term cross-section studies 329 b Time series studies 331 Regression analyses 331 Conclusions 335 XII THE SOCIAL RESPONSIBILITY OF TRANSNA TIONAL CORPORA TIONS TRANSNATIONAL CORPORATIONS 345 A The context for the social responsibility of TNCs 345 B Meanings of corporate social responsibility 346 Beyond philanthropy and compliance with law 346 Evolving corporate social contracts and stakeholder interest 347 The scope and content of corporate social responsibility 348 Business, civil society and government perceptions of corporate social responsibility 349 International guidelines and codes of conduct 350 International aspects of corporate social responsibility 351 Global corporate citizenship 352 C The growing importance of TNC social responsibility 354 D Recent developments in corporate social responsibility 355 E Increased activities by civil society groups 355 Business responses 360 Government actions 365 Outlook and policy implications 367 Notes 370 References 371 Annexes 401 Annex A Additional text tables 402 Annex B Statistical annex 463 Selected UNCT AD publications on transnational corporations UNCTAD and foreign direct investment 539 Questionnaire 545 EN World Investment Report 1999: For eign Dir Foreign Direct ect Investment and the Challenge of Development Page PAR T ONE ART Boxes I.1 I.2 I.3 I.4 II.1 II.2 II.3 II.4 II.5 II.6 II.7 III.1 III.2 III.3 III.4 III.5 III.6 IV.1 IV.2 IV.3 IV.4 IV.5 IV.6 IV.7 The difficulty of relating M&A values to FDI flows The rise of FDI as a source of finance for developing countries 10 FDI estimates 11 Salient features of FDI among developing countries and regions 25 Policy changes and FDI: the case of Sweden 39 Effects of FDI on Japan’s trade 44 The joint UNCTAD/ICC project on investment guides and capacity-building for least developed countries 53 FDI in the five countries most affected by the financial crisis 56 Negative effects of the financial crisis on FDI flows to Asian LDCs 59 A new wave of FDI from developing countries: Latin American TNCs in the 1990s 66 Regional integration and the internationalization of Argentine companies 68 Lukoil Oil Company 89 Why cross-border M&As have become popular in Japan 97 M&As in the metal mining and refining industries: a record year in 1998 100 Research joint ventures in the United States 106 Knowledge-based networks reshape the information and communications technology industries 110 Lear Seating: becoming a preferred first tier supplier 111 BIT negotiations between members of the Group of Fifteen 118 The BIT between Bolivia and the United States 119 Main features of Framework Agreement on the ASEAN Investment Area 121 The OECD Convention on Combating Bribery of Foreign Officials enters into force 127 Structure of the MAI 129 Checklist of issues suggested for study by the WTO Working Group on the Relationship between Trade and Investment 138 Transparency International 142 Figures I.1 I.2 I.3 I.4 I.5 I.6 I.7 I.8 I.9 I.10 I.11 I.12 I.13 N Components of FDI inflows, 1990-1997 International financial flows other than FDI outflows to foreign affiliates of United States TNCs and United States FDI outflows, 1986-1996 World FDI inflows and outflows: value and annual growth rates, 1985-1998 FDI inflows as a percentage of gross fixed capital formation, 1980, 1985, 1990, 1995 and 1997 12 Growth of technology payments and FDI flows, by group of countries,1980-1997 14 The export propensity of foreign affiliates and domestic firms in manufacturing, latest available year 15 Value-added per employee of foreign affiliates and domestic firms in manufacturing in selected host economies, latest available year 16 Transnationality index of host countries, 1996 17 FDI and trade shares of developing countries in world totals, 1980-1998 18 Concentration of FDI flows by the largest 10 host/home countries, 1985-1998 19 FDI stocks among the Triad and the countries in which FDI from the Triad dominates, 1988 and 1997 22 FDI outflows and exports of goods and non-factor services from developing countries as percentages of the world total, 1980-1998 23 Inward FDI stock, by sector for the world and developed countries, and inward FDI stock and value added by sector for developing countries, 1988 and 1997 27 #! 49 062 47 351 34 071 31 577 128 061 354 349 11 174 680 484 119 754 165 354 840 901 215 494 53 85 356 446 349 096 835 819 675 128 208 1 605 104 - Eur opean Union European Austria Belgium and Luxembourg Denmark Finland France Germany Greece Ireland Italy Netherlands Portugal Spain Sweden United Kingdom Unspecified Other Western Eur ope Europe Liechtenstein Norway Switzerland Nor th America North Canada United States Other de veloped economie developed Australia Israel Japan New Zealand South Africa Unspecified De veloping economies Developing Africa Nor th Africa North Egypt Libyan Arab Jamahiriya Morocco 50 537 198 572 090 700 15 904 501 602 799 672 165 690 310 087 240 283 53 228 002 15 690 498 13 192 10 390 039 24 959 141 226 199 156 52 51 - 85 279 79 900 53 820 1991 Majority Total World Developed De veloped economies Europe Western Eur ope Region/econom Region/economyy 30 960 167 387 797 19 858 106 427 034 397 309 676 691 085 130 320 810 16 065 680 14 385 670 595 35 188 429 423 14 546 - 73 769 58 824 35 089 50 017 197 794 064 287 14 204 508 527 642 038 309 159 091 183 180 140 040 26 361 562 22 798 17 610 733 35 12 525 603 713 22 319 306 306 306 - 121 894 99 168 55 197 1992 Majority Total 35 531 17 899 429 348 818 264 661 576 571 696 11 247 703 14 258 33 053 214 839 19 763 465 15 298 946 171 357 437 329 652 378 41 41 36 66 812 59 292 36 584 65 368 51 879 754 221 476 140 523 67 311 184 484 218 455 033 27 013 13 489 482 13 007 28 921 185 24 736 934 400 127 143 264 183 74 49 - 77 047 74 770 94 626 613 572 10 684 731 679 591 902 12 004 162 392 385 29 146 189 277 377 900 44 655 849 37 806 13 194 966 357 194 808 870 26 858 56 56 51 Total 92 644 75 333 44 929 706 496 11 497 13 191 68 431 378 584 242 346 067 33 355 17 311 14 026 16 271 52 042 570 43 472 18 324 856 141 10 467 78 783 32 365 74 49 - 196 367 163 010 1994 Majority 109 356 100 223 Total 162 344 134 895 1993 Majority (Millions of dollars) 70 235 64 161 238 297 376 133 079 15 536 189 983 970 227 298 020 19 816 074 431 641 52 223 12 652 39 571 887 870 85 113 440 378 463 - 140 813 132 344 Total 108 130 98 725 448 720 263 419 13 318 22 616 695 805 620 247 944 619 26 958 53 404 82 535 788 80 386 14 806 65 580 23 568 569 102 16 963 481 453 24 464 78 - 237 184 212 084 1995 Majority 81 688 72 339 725 405 305 921 12 111 682 236 16 113 180 283 959 22 415 349 317 044 988 60 967 18 757 42 210 569 290 376 096 232 575 10 264 708 645 - 162 686 152 224 1996 Majority Total 129 846 114 316 51 430 846 402 11 514 27 380 12 869 046 19 987 222 273 455 34 822 15 531 317 937 10 277 87 496 22 150 65 346 21 797 437 236 12 573 060 491 32 827 708 645 - 274 611 239 139 Anne le B.8 Cr oss-bor der M&A pur Annexx tab table Cross-bor oss-border purcc hases, bbyy region/econom region/economyy of pur purcc haser haser,, 1991-1998 127 148 89 677 208 493 238 584 12 495 10 191 143 318 939 18 224 442 055 677 26 672 37 471 748 36 723 77 356 21 301 56 055 12 747 691 171 123 223 538 18 414 - 236 216 217 251 1997 Majority 168 316 127 787 798 564 319 956 21 620 16 047 545 709 041 20 748 442 13 162 219 32 615 40 530 793 38 737 106 149 24 707 81 442 24 708 914 682 11 710 375 027 40 853 110 60 60 - 341 653 299 173 Total Total 16 635 274 162 162 - 666 112 - / 328 039 546 958 295 032 40 452 60 935 772 067 15 235 38 698 714 11 622 13 997 127 718 12 842 716 12 126 165 467 40 707 124 760 20 365 493 434 239 310 889 245 965 381 614 280 909 26 143 34 092 78 895 12 728 32 356 700 839 858 110 093 10 812 506 10 306 130 450 38 617 91 832 14 511 620 429 835 310 317 410 704 544 311 401 738 526 713 256 777 340 881 1998 Majority World Investment Report 1999: For eign Dir Foreign Direct ect Investment and the Challenge of Development Other Africa Cameroon Central African Republic Gabon Gambia Ghana Mauritius Latin America and the Caribbean South America Argentina Bolivia Brazil Chile Colombia Peru Surinam Uruguay Venezuela Other Latin America and the Caribbean Bahamas Barbados Belize Bermuda Cayman Islands Cuba Dominican Republic Grenada Mexico Netherlands Antilles Panama Saint Kitts and Nevis Trinidad and Tobago V irgin Islands De veloping Eur ope Developing Europe Malta Asia West Asia Bahrain Region/econom Region/economyy 104 104 728 187 17 170 - 541 107 79 355 315 832 - 104 104 129 17 17 - 112 107 372 563 - 1991 Majority Total 358 500 828 30 10 003 509 403 542 184 182 559 500 999 30 30 16 921 853 403 092 533 30 435 68 1992 Majority Total 117 697 31 357 32 5 110 942 746 222 105 57 433 609 1993 Majority 035 922 52 587 474 5 23 417 814 746 380 345 57 447 609 229 Total 913 14 100 784 614 897 585 25 25 495 582 42 105 16 420 1994 Majority 25 25 538 001 96 200 032 249 420 Total 538 14 182 140 100 063 14 23 753 781 585 (Millions of dollars) 393 299 94 350 825 - 113 720 837 167 658 53 - 1995 Majority 683 31 18 414 169 51 21 591 114 78 78 794 111 902 275 763 83 75 Total 078 701 434 733 14 195 26 915 729 347 63 63 519 204 126 414 14 210 100 388 63 63 519 200 849 404 14 172 259 351 424 717 14 195 356 096 347 Total 1996 Majority Anne le B.8 Cr oss-bor der M&A pur ued) Annexx tab table Cross-bor oss-border purcc hases, bbyy region/econom region/economyy of pur purcc haser haser,, 1991-1998 (contin (continued) 576 40 131 290 12 100 14 120 922 879 293 717 333 201 83 100 1997 Majority 199 40 136 33 743 12 200 35 33 522 742 879 50 112 50 221 022 103 120 615 83 100 Total 613 515 738 910 440 280 953 386 112 112 274 661 76 427 158 - 1998 Majority 680 565 738 925 440 705 755 386 / 657 976 111 427 158 281 - 112 - Total Annex B #! #! 34 549 190 58 484 103 852 270 58 375 40 235 18 417 137 15 - 34 500 29 809 427 270 58 14 12 29 - 1991 Majority Total Cyprus Iran, Islamic Republic Kuwait Lebanon Oman Saudi Arabia Turkey United Arab Emirates Central Asia Azerbaijan Kazakhstan Kyrgyzstan Uzbekistan South, East and South- East Asia Bangladesh Brunei Darussalam Cambodia China Hong Kong, China India Indonesia Korea, Democratic People’s Republic Korea, Republic of Laos Macau Malaysia Myanmar Nepal Pakistan Philippines Singapore Sri Lanka Taiwan Province of China Thailand Viet Nam Region/econom Region/economyy 156 74 44 203 234 80 - 32 75 494 786 885 32 779 143 107 51 554 001 638 20 13 32 181 225 16 068 688 559 422 106 1992 Majority Total 847 220 117 882 533 - 301 230 110 - 10 20 321 719 715 700 19 887 202 450 388 247 47 20 177 168 202 083 023 173 1993 Total Majority 737 820 169 77 - 606 258 54 717 183 719 16 390 1994 Majority Total 10 021 433 811 760 181 555 659 056 479 19 972 636 414 619 519 (Millions of dollars) 391 977 211 182 - 095 500 325 525 60 53 255 159 141 1995 Majority 253 11 765 821 577 012 515 535 56 3 19 471 12 82 200 921 201 615 Total 128 290 687 12 - 186 162 175 262 151 260 58 332 062 504 1996 Majority 413 006 116 346 - 158 750 162 105 585 622 158 285 285 21 901 182 416 642 614 Total Anne le B.8 Cr oss-bor der M&A pur ued) Annexx tab table Cross-bor oss-border purcc hases, bbyy region/econom region/economyy of pur purcc haser haser,, 1991-1998 (contin (continued) 349 30 955 222 - 917 004 39 12 198 950 451 321 1997 Majority 490 66 841 884 15 - 744 880 314 250 416 27 779 641 635 416 Total 267 442 143 - 105 67 500 327 189 174 - 1998 Majority / 728 - 466 125 013 197 67 212 503 587 950 001 268 146 - Total World Investment Report 1999: For eign Dir Foreign Direct ect Investment and the Challenge of Development 105 - 53 53 105 22 1991 Majority Total 207 207 192 207 207 200 1992 Total Majority 297 18 266 14 294 31 18 14 110 1993 Total Majority Unspecified former Soviet Union Involving purchasers from more than two economies - - 1994 Majority 512 - 916 512 916 76 1995 Majority Total 85 551 66 435 50 - Total 86 30 30 90 - - 43 836 90 976 627 969 552 39 579 700 - 144 - Total 1997 Majority 1996 Total Majority Note: “Majority” refers to business combinations of which the investor acquires more than 50 per cent voting securities of the resulting business b a Source: UNCTAD, based on data provided by KPMG Corporate Finance Central and Eastern Eur ope Europe Czech Republic Estonia Hungary Latvia Romania Russian Federation Slovakia Former Soviet Union a Ukraine Dual nationality Multinational b Unkno wn Unknown Region/econom Region/economyy (Millions of dollars) Anne le B.8 Cr oss-bor der M&A pur luded) Annexx tab table Cross-bor oss-border purcc hases, bbyy region/econom region/economyy of pur purcc haser haser,, 1991-1998 (conc (concluded) - 300 - 300 - - 14 950 - 964 - 1998 Majority Total Annex B #!! #!" 73 769 803 67 56 11 736 582 154 43 766 12 358 510 179 328 461 366 912 747 165 288 284 655 613 783 509 805 469 267 425 47 011 157 091 717 128 246 248 227 880 898 982 873 561 312 403 453 275 418 437 420 871 016 308 315 893 789 104 888 393 195 187 872 185 477 416 218 64 026 13 561 612 193 763 121 894 246 266 56 166 44 981 1992 Majority Total 85 279 994 302 301 692 1991 Majority Total 49 062 All industries Primar 628 Primaryy sector Agriculture, forestry and fishing 47 Agriculture and horticulture Forestry 47 Fishing Mining and Petroleum 581 Extraction of mineral oil and natural gas 169 Extraction of minerals not elsewhere specified 412 Secondar 29 813 Secondaryy sector Food, beverages and tobacco 626 Textile, leather and clothing 817 Textile industry 577 Manufacture of leather and leather good 128 Footwear and clothing industries 112 Timber and wooden furniture industries 43 Manufacture of paper and paper products; printing and publishing 981 Coke, petroleum products and nuclear fuel 044 Mineral oil processing 044 Coal extraction and manufacture of solid fuel Chemicals and chemical products 942 Chemical industry 934 Production of man-made fibres Processing of rubber and plastics 306 Manufacture of non-metallic products 967 Basic metals and metal products 635 Extraction and preparation of metalliferous 124 Metal manufacturing 125 Manufacture of metal goods not elsewhere specified 386 Region/econom Region/economyy 336 816 758 818 11 619 11 616 595 912 910 888 70 893 54 187 141 116 36 739 552 901 573 239 66 812 568 213 83 130 355 455 586 887 186 21 240 21 038 202 816 251 928 048 862 480 449 205 531 251 63 758 548 410 674 23 763 162 344 24 308 294 109 185 24 014 1993 Total Majority 457 217 007 637 18 282 18 159 123 203 224 681 381 744 610 715 164 530 96 66 667 11 376 983 289 760 109 356 762 906 742 164 856 Total 741 889 081 637 23 631 23 464 167 226 235 10 711 191 554 10 861 215 165 639 143 109 164 16 092 748 944 525 196 367 588 920 756 164 668 1994 Majority (Millions of dollars) 659 744 698 196 17 655 17 563 92 470 925 10 101 217 21 548 366 251 728 68 465 13 865 570 315 339 140 813 477 410 372 38 067 Total 002 194 132 199 26 388 26 157 231 059 706 14 328 212 013 603 434 84 468 006 105 664 16 363 141 589 20 413 237 184 22 215 796 522 266 21 419 1995 Majority 147 751 670 67 16 795 16 795 303 582 568 754 687 100 537 146 106 864 59 515 505 326 74 317 162 686 577 396 283 113 181 1996 Majority Anne le B.9 Cr oss-bor der M&As, bbyy sector and industr Annexx tab table Cross-bor oss-border industryy, 1991-1998 187 068 518 232 21 182 20 422 760 915 555 773 015 783 11 272 666 166 164 873 96 128 10 151 486 156 22 064 274 611 23 408 471 358 113 22 937 Total 682 477 765 60 16 767 16 767 157 127 924 118 057 358 277 226 441 235 87 755 15 636 570 903 12 649 236 216 13 673 789 393 300 96 12 884 Total 680 869 943 350 22 838 22 766 72 328 642 14 492 280 930 911 312 226 476 398 117 786 17 954 632 930 22 425 341 653 23 812 989 534 356 99 22 823 1997 Majority Total 75 973 042 184 200 633 22 766 22 699 67 129 700 426 063 430 29 077 920 34 624 / 408 140 122 653 24 298 24 232 67 289 399 670 870 218 40 926 920 34 713 282 282 120 803 189 298 16 325 18 314 098 193 440 445 68 551 410 704 544 311 70 363 77 828 530 572 530 572 68 833 76 256 1998 Majority World Investment Report 1999: For eign Dir Foreign Direct ect Investment and the Challenge of Development 578 566 12 156 153 449 3135 459 676 810 29 199 727 726 259 791 389 195 972 74 101 113 682 210 11 435 001 302 074 2790 050 740 64 35 273 350 212 138 503 675 729 223 332 242 435 142 298 215 400 073 572 13 432 133 895 666 910 317 222 748 101 113 823 25 720 108 840 54 486 848 771 4879 872 506 635 514 502 12 1992 Majority Total 422 422 - 1991 Majority Total Machinery and equipment 114 Mechanical engineering 114 Coke ovens Office machinery and data processing equipment 851 Electrical and electronic engineering 970 Instrument engineering 734 Motor vehicles and other transport equipment 1778 Manufacture of motor vehicles and parts 527 Manufacture of other transport equipment 251 Other manufacturing industries 49 Ter tiar 17 620 ertiar tiaryy sector Electricity and water distribution Production and distribution of electricity, gas and other forms of energy Water supply industry Construction 186 Wholesale distribution (except dealing in scrap and waste materials) 395 Retail distribution 334 Hotels and catering 617 Transport and storage 481 Railways Sea transport 56 Air transport 243 Other inland transport 123 Supporting services to transport 174 Miscellaneous transport services & storage not elsewhere specified 885 Postal services and telecommunications 338 Banking and finance 965 Region/econom Region/economyy 194 651 580 587 809 923 426 715 78 12 41 452 35 155 527 221 28 504 487 258 785 979 324 538 623 623 - 17 062 10 134 698 260 052 999 146 716 739 406 24 563 482 838 122 098 232 74 279 10 320 512 2610 110 347 805 934 934 - 1993 Total Majority 386 032 296 433 422 519 194 25 288 178 227 180 342 511 703 882 38 927 342 291 2994 782 619 623 028 028 - 1994 Majority 238 6972 407 749 826 602 602 - Total 958 961 821 335 036 811 888 45 289 416 994 323 10 506 35 854 734 911 77 615 10 541 (Millions of dollars) 497 14 478 293 469 195 515 185 281 269 334 11 760 348 662 333 90 68 871 13 108 016 2349 929 322 425 998 998 - 506 7810 11 595 472 328 520 508 12 Total 17 921 16 805 034 996 948 228 571 511 346 719 961 16 039 451 084 304 139 109 305 17 490 1995 Majority 475 14 296 613 324 972 463 265 43 494 916 199 13 904 307 713 780 109 96 564 14 211 952 5732 137 707 940 955 955 - 1996 Majority Anne le B.9 Cr oss-bor der M&As, bbyy sector and industr ued) Annexx tab table Cross-bor oss-border industryy, 1991-1998 (contin (continued) 15 529 21 303 396 563 638 401 10 540 700 693 937 664 150 24 203 216 189 060 215 155 075 25 419 10 998 13058 10 186 859 613 848 848 - Total 426 28 136 618 955 10 206 670 984 554 495 318 15 296 11 319 105 041 134 788 15 307 568 673 016 12 518 075 499 499 - 1997 Majority 20 154 33 676 025 023 12 138 954 732 920 200 571 017 32 103 234 881 709 061 200 055 32 337 806 515 11 486 12 605 652 078 078 - Total 50 849 52 941 378 015 346 067 067 Total 30 184 41 098 445 513 676 047 270 105 74 762 879 32 776 819 278 / 50 384 50 677 761 554 17 968 244 837 130 579 214 148 39 474 023 168 548 093 580 670 219 533 277 181 35 596 42 497 10 191 11 739 722 977 328 953 953 1998 Majority Annex B #!# #!$ 14 1960 803 16 91 50 - 92 2300 106 157 - 10 27 - 50 101 889 29 - 16 3069 - 525 166 296 914 802 112 664 189 475 Note: - 10 163 99 - 173 3279 - 851 181 621 454 415 39 177 162 15 - 17 020 326 - 60 1371 - 589 350 825 927 905 22 253 253 - 1994 Majority 82 724 349 - 261 5167 10 958 596 834 895 673 222 306 283 13 Total - 7 577 684 - 884 8273 219 308 250 181 11 268 10 867 401 233 14 - 1995 Majority - 89 12 766 686 12 188 13560 219 025 438 190 13 185 12 627 558 242 23 - Total - 25 808 122 263 092 6221 - 12 339 035 130 12 131 11 433 698 392 222 170 1996 Majority 10 29 104 171 264 083 8586 - 13 128 11 579 141 14 914 14 112 802 396 222 174 Total - 54 920 981 464 43 605 462 12 23 752 927 111 15 888 15 017 871 040 950 78 1997 Majority “Majority” refers to business combinations of which the foreign investor acquires more than 50 per cent voting securities of the resulting business - 10 708 99 - 173 1817 - 412 224 611 677 677 304 290 14 1993 Total Majority Source: UNCTAD, based on data provided by KPMG Corporate Finance 810 908 194 337 231 106 539 119 420 1992 Majority Total 10 024 005 566 353 349 401 368 33 1991 Majority Total Insurance, except for compulsory social security 863 Owning and dealing in real estate 526 Renting of movables 481 Business services 973 Business services 973 Research and development Public Administration 344 Sanitary services 311 Education 33 Public administration, national defence and compulsory social security Medical and other health services: veterinary services 92 Other services 980 Recreational services and other cultural services 797 Personal services 146 Commission agents Repair of consumer goods and vehicles 10 Dealing in scrap and waste materials 27 Other services provided to the general public - Region/econom Region/economyy (Millions of dollars) Anne le B.9 Cr oss-bor der M&As, bbyy sector and industr luded) Annexx tab table Cross-bor oss-border industryy, 1991-1998 (conc (concluded) 56 69 370 13 483 468 43 605 16 490 12 24 730 646 199 18 339 17 433 906 149 059 78 Total 750 286 329 672 53 407 090 26 35 425 404 389 34 853 33 164 690 307 109 173 1998 Majority 750 286 329 933 190 415 488 26 37 029 803 389 39 427 37 635 793 307 109 173 Total World Investment Report 1999: For eign Dir Foreign Direct ect Investment and the Challenge of Development Selected UNCT AD publications on UNCTAD transnational coporations and foreign direct investment Selected UNCT AD publications on UNCTAD transnational corporations and foreign direct investment A Individual studies For eign Dir ect Invesment in Africa: Performance and Potential 89 p UNCTAD/ITE/IIT/Misc 15 Foreign Direct The Financial Crisis in Asia and For eign Dir Foreign Direct ect Investment: An Assessment 101 p Sales No GV.E.98.0.29 $20 World Investment Report 1998: T Trrends and Determinants 430 p Sales No E.98.II.D.5 $45 World Investment Report 1998: T Trrends and Determinants An Overview 67 p Free-of-charge Bilateral Investment T Trreaties in the mid-1990s 314 p Sales No E.98.II.D.8 $46 Handbook on For ect Investment by Small and Medium-sized Enterprises: Lessons fr om Asia 200 p Foreign Direct from eign Dir Sales No E.98.II.D.4 $48 Handbook on For eign Dir ect Investment by Small and Medium-sized Enterprises: Lessons fr om Asia Foreign Direct from Executive Summary and Report on the Kunming Confer ence 74 p Free-of-charge Conference International Investment T owards the Y ear 2002 166 p Sales No GV.E.98.0.15 $29 (Joint publication with Towards Year Invest in France Mission and Arthur Andersen, in collaboration with DATAR.) World Investment Report 1997: T Transnational Structuree and Competition Policy 420 ransnational Corporations, Market Structur p Sales No E.97.II.D.10 $45 World Investment Report 1997: T ransnational Corporations, Market Structur Transnational Structuree and Competition Policy Policy An Overview 70 p Free-of-charge Overview International Investment T owards the Y ear 2001 81 p Sales No GV.E.97.0.5 $35 (Joint publication with Towards Year Invest in France Mission and Arthur Andersen, in collaboration with DATAR.) World Investment Dir ectory Directory ectory V Vol West ol VI: W est Asia 1996 192 p Sales No E.97.II.A.2 $35 World Investment Dir ectory Directory ectory V Vol V:: Africa 1996 508 p Sales No E.97.II.A.1 $75 ol V Sharing Asia’ ect Investment in the Eur opean Union 192 p Sales No E.97.II.D.1 Asia’ss Dynamism: Asian Dir Direct European $26 Transnational Corporations and W orld Development 656 p ISBN 0-415-08560-8 (hardback), 0-415-08561-6 World (paperback) £65 (hardback), £20.00 (paperback) (Published by International Thomson Business Press on behalf of UNCTAD.) Companies without Borders: T ransnational Corporations in the 1990s 224 p ISBN 0-415-12526-X £47.50 Transnational (Published by International Thomson Business Press on behalf of UNCTAD.) The New Globalism and Developing Countries 336 p ISBN 92-808-0944-X $25 (Published by United Nations University Press.) Investing in Asia’ opean Union Dir Asia’ss Dynamism: Eur European Direct ect Investment in Asia 124 p ISBN 92-827-7675-1 ECU 14 (Joint publication with the European Commission.) World Investment Report 1996: Investment, T Trade rade and International Policy Arrangements 332 p Sales No E.96.II.A.14 $45 #!% World Investment Report 1999: For eign Dir Foreign Direct ect Investment and the Challenge of Development World Investment Report 1996: Investment, T rade and International Policy Arrangements An Overview Trade Overview 51 p Free-of-charge International Investment Instruments: A Compendium Vol I 371 p Sales No E.96.II.A.9; Vol II 577 p Sales No E.96.II.A.10; Vol III 389 p Sales No E.96.II.A.11; the 3-volume set, Sales No E.96.II.A.12 $125 World Investment Report 1995: T Transnational ransnational Corporations and Competitiveness 491 p Sales No E.95.II.A.9 $45 World Investment Report 1995: T ransnational Corporations and Competitiveness An Overview Transnational Overview 51 p Freeof-charge Accounting for Sustainable For Forestry estry Management A Case Study 46 p Sales No E.94.II.A.17 $22 Small and Medium-sized T ransnational Corporations Executive Summary and Report of the Osaka Transnational Confer ence 60 p Free-of-charge Conference World Investment Report 1994: T ransnational Corporations, Employment and the W orkplace 482 p Sales Transnational Workplace No E.94.II.A.14 $45 World Investment Report 1994: T orkplace An Executive Transnational Workplace ransnational Corporations, Employment and the W Summary 34 p Free-of-charge Liberalizing International T ransactions in Services: A Handbook 182 p Sales No E.94.II.A.11 $45 (Joint Transactions publication with the World Bank.) World Investment Dir ectory Directory ectory V Vol IV:: Latin America and the Caribbean 478 p Sales No E.94.II.A.10 $65 ol IV Conclusions on Accounting and Reporting by T Transnational ransnational Corporations 47 p Sales No E.94.II.A.9 $25 Accounting, V aluation and Privatization 190 p Sales No E.94.II.A.3 $25 Valuation Envir onmental Management in T ransnational Corporations: Report on the Benchmark Corporate Environmental Transnational Envir onment Survey 278 p Sales No E.94.II.A.2 $29.95 Environment Management Consulting: A Survey of the Industry and Its Lar gest Firms 100 p Sales No E.93.II.A.17 $25 Largest Transnational Corporations: A Selective Bibliography Bibliography,, 1991-1992 1991-1992 736 p Sales No E.93.II.A.16 $75 (English/ French.) Small and Medium-sized T ransnational Corporations: Role, Impact and Policy Implications 242 p Sales Transnational No E.93.II.A.15 $35 World Investment Report 1993: T ransnational Corporations and Integrated International Pr oduction 290 Transnational Production p Sales No E.93.II.A.14 $45 World Investment Report 1993: T oduction An Transnational Production ransnational Corporations and Integrated International Pr Executive Summary 31 p ST/CTC/159 Free-of-charge For eign Investment and T rade Linkages in Developing Countries 108 p Sales No E.93.II.A.12 $18 Foreign Trade World Investment Dir ectory 1992 V Directory Vol Countries 532 p Sales No E.93.II.A.9 $75 ol III: Developed Countries Transnational Corporations fr om Developing Countries: Impact on Their Home Countries 116 p Sales No from E.93.II.A.8 $15 #!& Selected UNCT AD publications on UNCTAD transnational coporations and foreign direct investment Debt-Equity Swaps and Development 150 p Sales No E.93.II.A.7 $35 Fr om the Common Market to EC 92: Regional Economic Integration in the Eur opean Community and From European Transnational Corporations 134 p Sales No E.93.II.A.2 $25 World Investment Dir ectory 1992 V ol II: Central and Eastern Eur ope Directory Vol Europe ope 432 p Sales No E.93.II.A.1 $65 (Joint publication with the United Nations Economic Commission for Europe.) The East-W est Business Dir ectory 1991/1992 570 p Sales No E.92.II.A.20 $65 East-West Directory World Investment Report 1992: T owth: An Executive Summary Transnational Growth: ransnational Corporations as Engines of Gr 30 p Sales No E.92.II.A.24 Free-of-charge World Investment Report 1992: T owth 356 p Sales Transnational Growth ransnational Corporations as Engines of Gr No E.92.II.A.19 $45 World Investment Dir ectory 1992 V Directory Vol ol I: Asia and the Pacific 356 p Sales No E.92.II.A.11 $65 Climate Change and T ransnational Corporations: Analysis and T Transnational Trrends 110 p Sales No E.92.II.A.7 $16.50 For eign Dir ect Investment and T echnology in India 150 p Sales No E.92.II.A.3 $20 Foreign Direct Transfer Technology ransfer of T The Determinants of For eign Dir ect Investment: A Survey of the Evidence 84 p Sales No E.92.II.A.2 $12.50 Foreign Direct The Impact of T rade-Related Investment Measur es on T rade and Development: Theory Trade-Related Measures Trade Theory,, Evidence and Policy Implications 108 p Sales No E.91.II.A.19 $17.50 (Joint publication with the United Nations Centre on Transnational Corporations.) Transnational Corporations and Industrial Hazards Disclosur Disclosuree 98 p Sales No E.91.II.A.18 $17.50 Transnational Business Information: A Manual of Needs and Sour ces 216 p Sales No E.91.II.A.13 $45 Sources World Investment Report 1991: The T riad in For eign Dir ect Investment 108 p Sales No.E.91.II.A.12 $25 Triad Foreign Direct B IIA Issues Paper Series National T Trreatment UNCTAD Series on issues in international investment agreements 104p Sales No E.99.II.D.16 $12 Fair and Equitable T Trreatment UNCTAD Series on issues in international investment agreements 64p Sales No E.99.II.D.15 $12 Investment-Related T rade Measur es UNCTAD Series on issues in international investment agreements 64p Trade Measures Sales No E.99.II.D.12 $12 Most-Favour ed-Nation T Most-Favoured-Nation Trreatment eatment UNCTAD Series on issues in international investment agreements 72p Sales No E.99.II.D.11 $12 Admission and Establishment Establishment UNCTAD Series on issues in international investment agreements 72p Sales No E.99.II.D.10 $12 Scope and Definition Definition UNCTAD Series on issues in international investment agreements 96p Sales No E.99.II.D.9 $12 Transfer Pricing Pricing UNCTAD Series on issues in international investment agreements 72p Sales No E.99.II.D.8 $12 #!' 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No 30 Incentives and For Foreign Direct eign Dir ect Investment, T No 29 For Foreign Direct Trade, rade, Aid and Migration 100 p Sales No E.96.II.A.8 $25 (Joint publication with the International Organization for Migration.) eign Dir ect Investment in Africa 119 p Sales No E.95.II.A.6 $20 Foreign Direct No 28 For No 27 Tradability of Banking Services: Impact and Implications 195 p Sales No E.94.II.A.12 $50 ecasting Regional Flows of For eign Dir ect Investment 58 p Sales No E.94.II.A.5 No 26 Explaining and For Forecasting Foreign Direct $25 radability in Insurance Services 54 p Sales No E.93.II.A.11 $20 Tradability No 25 International T operty Rights and For eign Dir ect Investment 108 p Sales No E.93.II.A.10 $20 No 24 Intellectual Pr Property Foreign Direct eign No 23 The T Transnationalization Foreign ransnationalization of Service Industries: An Empirical Analysis of the Determinants of For Dir ect Investment by T ransnational Service Corporations 62 p Sales No E.93.II.A.3 $15 Direct Transnational No 22 Transnational Banks and the External Indebtedness of Developing Countries: Impact of Regulatory Changes 48 p Sales No E.92.II.A.10 $12 eign Dir ect Investment, Debt and Home Country Policies 50 p Sales No E.90.II.A.16 $12 No 20 For Foreign Direct rade Negotiations 52 p Sales No E.90.II.A.15 No 19 New Issues in the Uruguay Round of Multilateral T Trade $12.50 eign Dir ect Investment and Industrial Restructuring in Mexico 114 p Sales No E.92.II.A.9 $12 Foreign Direct No 18 For No 17 Government Policies and For Foreign Direct eign Dir ect Investment 68 p Sales No E.91.II.A.20 $12.50 The United Nations Library on T ransnational Corporations Transnational (Published by Routledge on behalf of the United Nations.) Set A (Boxed set of volumes ISBN 0-415-08554-3 £350): ransnational Corporations 464 p Transnational Volume One: The Theory of T Volume Two: Transnational Corporations: A Historical Perspective 464 p Development 448 p Volume Three: Transnational Corporations and Economic Development Strategy 416 p Volume Four: Transnational Corporations and Business Strategy Set B (Boxed set of volumes ISBN 0-415-08555-1 £350): Management 400 p Volume Five: International Financial Management ganization of T ransnational Corporations Organization Transnational Corporations 400 p Volume Six: Or ransnational Corporations Transnational Corporations 352 p Volume Seven: Governments and T Trade Payments 320 p Volume Eight: Transnational Corporations and International T rade and Payments Set C (Boxed set of volumes ISBN 0-415-08556-X £350): Volume Nine: Transnational Corporations and Regional Economic Integration 331 p ces Resources ces 397 p Volume Ten: Transnational Corporations and the Exploitation of Natural Resour Industrialization 425 p Volume Eleven: Transnational Corporations and Industrialization #" Selected UNCT AD publications on UNCTAD transnational coporations and foreign direct investment Volume Twelve: Transnational Corporations in Services Services 437 p Set D (Boxed set of volumes ISBN 0-415-08557-8 £350): ransnational Corporation Activity 419 p Transnational Volume Thirteen: Cooperative Forms of T ransfer Pricing and T axation 330 p Transfer Taxation Volume Fourteen: Transnational Corporations: T Structuree and Industrial Performance 383 p Volume Fifteen: Transnational Corporations: Market Structur ces 429 p Resources Volume Sixteen: Transnational Corporations and Human Resour Set E (Boxed set of volumes ISBN 0-415-08558-6 £350): Volume Seventeen: Transnational Corporations and Innovatory Activities 447 p echnology T ransfer to Developing Countries 486 p Technology Transfer Volume Eighteen: Transnational Corporations and T Volume Nineteen: Transnational Corporations and National Law 322 p Volume Twenty: Transnational Corporations: The International Legal Framework 545 p D Journals Transnational Corporations (formerly The CTC Reporter ) Published three times a year Annual subscription price: $45; individual issues $20 Pr ProInvest oInvest , a quarterly newsletter, available free of charge United Nations publications may be obtained from bookstores and distributors throughout the world Please consult your bookstore or write to: United Nations Publications Sales Section Room DC2-0853 United Nations Secretariat New York, NY 10017 U.S.A Tel: (1-212) 963-8302 or (800) 253-9646 Fax: (1-212) 963-3489 E-mail: publications@un.org OR Sales Section United Nations Office at Geneva Palais des Nations CH-1211 Geneva 10 Switzerland Tel: (41-22) 917-1234 Fax: (41-22) 917-0123 E-mail: unpubli@unorg.ch All prices are quoted in United States dollars For further information on the work of the Division on Investment, Technology and Enterprise Development, UNCTAD, please address inquiries to: United Nations Conference on Trade and Development Division on Investment, Technology and Enterprise Development Palais des Nations, Room E-9123 CH-1211 Geneva 10 Switzerland Telephone: (41-22) 907-5707 Telefax: (41-22) 907-0194 E-mail: almario.medarde@unctad.org #" World Investment Report 1999: #" For eign Dir Foreign Direct ect Investment and the Challenge of Development QUESTIONNAIRE World Investment Report 1999: Foreign Direct Investment and the Challenge of Development Sales No E.99.II.D.3 In order to improve the quality and relevance of the work of the UNCTAD Division on Investment, Technology and Enterprise Development, it would be useful to receive the views of readers on this and other similar publications It would therefore be greatly appreciated if you could complete the following questionnaire and return to: Readership Survey UNCTAD Division on Investment, Technology and Enterprise Development United Nations Office in Geneva Palais des Nations Room E-9123 CH-1211 Geneva 10 Switzerland Name and address of respondent (optional): Which of the following best describes your area of work? 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Yes No If not, please check here if you would like to receive a sample copy sent to the name and address you have given above [...]... taxation had reached a total of 1,871 At the regional and interregional levels, rule-making activity on FDI continued to be intense in all regions, mainly in connection with the creation or expansion of regional integration schemes, and typically involving rules for the liberalization and protection of FDI The most important development in 1998 was that the negotiations on a Multilateral Agreement on. .. are concentrating on consolidating their assets and activities so as to strengthen their readiness for global expansion or survival once the health of the world economy, including countries affected by the recent financial crises and their aftermath, is fully restored TRENDS Transnational corporations drive international pr production oduction … International production – the production of goods and. .. international production In 1998, despite adverse economic conditions such as the financial crisis and ensuing recession in several Asian countries, the financial and economic crisis in the Russian Federation and the repercussions of these crises in some Latin American countries, declining world growth, trade, and commodity prices, and reduced bank lending, portfolio investment and privatization activity,... acquired and subsequently operated However, there may be value in monitoring M&As, instituting effective competition policies, and placing limits on them when the macroeconomic situation justifies it This raises the question of the effects of FDI on market structure in host countries There has been a long-standing concern that the entry of large TNCs raises concentration levels within an economy and can... depending on the nature of the economy and the government One vision — pursued, for example, by Malaysia, Singapore and Thailand — was to rely substantially on FDI, integrating the economy into TNC production networks and promoting competitiveness by upgrading within those networks Another vision — pursued by the Republic of Korea and Taiwan Province of China — was to develop domestic enterprises and autonomous... enterprise protection differs from the infant industry argument for trade protection When trade protection is eliminated, consumers benefit from cheaper imports and greater product variety; but some domestic production and employment can be lost In contrast, in the case of local enterprise protection, the absence of such protection from FDI competition does not lead to loss of domestic production and employment... were discontinued; however, work in the OECD continued in several other investment-related areas Overall, the question of governance in international business transactions has been a recurrent subject in discussions and work related to international instruments in recent years International pr oduction has many dimensions … production International production involves a package of tangible and intangible... acquisition of existing enterprises in countries by firms from others Once internationally dispersed production units under common governance are established, mobile and location-bound factors of production to which a TNC has access in home and host countries (and sometimes even third countries) are combined in each unit in ways and for production that contribute the most to the firm’s economic and strategic... due to the liberalization of trade, investments and capital markets and to deregulation in a number of industries, and fiercer competitive pressures brought about by globalization and technological changes Under these conditions, expanding firm size and managing a portfolio of locational assets becomes more important for firms, as it enables them to take advantage of resources and markets world-wide... more and better employment opportunities; and protecting and conserving the physical environment for future generations The new, more competitive, context of a liberalizing and globalizing world economy in which economic activity takes place imposes considerable pressures on developing countries to upgrade their resources and capabilities if they are to achieve these objectives This new global context ... 255 LEE World Investment Report 1999: For eign Dir Foreign Direct ect Investment and the Challenge of Development Page IX GENERA TING EMPLOYMENT AND STRENGTHENING GENERATING THE SKILLS BASE... importance of the environment for development 289 B Environmental strategies of TNCs 292 C The impact of FDI on the environment in host developing countries 294 D An environmental profile... management: evidence from the Chilean pulp and paper industry 301 ISO 14001 standards for environmental management 302 Combining environmental management with eco-efficiency in