ABSTRACT
In the last decade there has been a surge in foreign direct investments throughout the world economy. In the late 1980s, the flows were concentrated in the developed countries (Graham and Krugman, 1993). Since then developing countries have increased their share of inward investment flows from 17.5 per cent of world FDI in 1988 to 37.4 per cent of world FDI in 1994 ( The Economist, 16 December 1995). These large investment flows have drawn attention to the importance of multinational enterprises (MNEs) in the world economy and to the opportunities available for individual countries if they can attract those investment flows.
