ABSTRACT
This chapter explains the growth of transnational corporations (TNCs) and their changing form, especially the emergence of global production networks and value chains, and the institutions, policies and instruments seeking to attract and embed foreign direct investment (FDI) in localities and regions. TNCs have been described as the movers and shapers of the global economy. The patterns in the flows of FDI reflect the new global economic and political order. The opening up of China to FDI was an outcome of the economic reforms initiated by Deng Xiaoping in 1978 under the rubric of Socialism with Chinese characteristics. Both the GPN and GVC approaches emphasise the importance and potential of the process of upgrading within production networks and value chains, and this process has potentially important implications for local and regional development. The attraction and embedding of exogenous resources in the form of mobile investments and occupations and people remain crucial to the prospects for local and regional development.
