ABSTRACT
It is now generally recognised that the multinational enterprise (MNE), through its investment and trading activities, is the principal means by which national economies are linked (Dunning, 2001). Not only are MNEs the main beneficiaries of the process we now call globalisation, they are also its key protagonists. Consequently, host countries today – and especially developing countries – increasingly compete to attract certain types of foreign direct investment (FDI). Initially, the aim is to benefit their economies in terms of, for example, the capital and finance, employment, technology, demonstration effects, domestic and international trade linkages, and so forth, which usually accompany the foreign investing firm. The ultimate aim is to deepen the country’s participation in the globalisation process.
