ABSTRACT
In recent decades, the marketplaces of the developing countries have been emerging as important destinations of FDI flows.1 MNCs and the governments of major capital exporting countries seem to be acting together to get the hurdles in FDI flows removed and to facilitate the smooth functioning of foreign investment (Chapter Five). Developing countries, on the other hand, while keen to supplement their meagre resources of development with FDI, seem to be unsure about giving unrestricted market access to foreign investors. There are many areas where the interests of these two groups are at variance, and there are other areas where they coincide.
