ABSTRACT
This chapter discusses the various theoretical approaches to the firm and foreign investment from the point of view of the role of local relations. Transnational corporations are perceived as leading components of contemporary capitalism and a major vehicle of globalisation. Poland is an interesting case here for at least three reasons. First, it represents the second largest post-socialist economy after Russia. Second, it has recently experienced fast industrial growth. Third, trade unions played a unique role, having been instrumental in bringing down the communist regime and part of all government coalitions throughout the 1990s. The scope of domestic supply linkages is very important from the point of view of the host economy, as they generate direct and indirect multiplier effects. A firm’s geographic embeddedness is not just an outcome of its actions, but also a mediating factor that shapes the trajectory of the firm in a host territory.
