FOREIGN DIRECT INVESTMENT AND
MULTINATIONAL CORPORATIONS
course 380.727 -- spring 1998
Tuesdays, 6:00 to 8:00 PM
Course Outline and Reading List
Joel Bergsman and Dale R. Weigel
Course organization
The course is organized in two parts:

The first part deals mostly with empirical, factual material -- "positive" in the jargon
of economics. This covers questions such as what is FDI; how large is it; where does
it go; where does it come from; why. What is an MNC; why do they exist; where;
what do they do.

The second part of the course will be mostly "normative" i.e. policy issues that arise
from those facts. Who likes these facts and why; who does not like these facts and
why; what can or should be done about it.
Prerequisites
No student should enroll in this course without a mastery of the material taught in:



Microeconomic Theory
International Trade Theory
Corporate Finance
Beyond these specific requirements, students should expect a work load that is heavier than
the average at SAIS.
One class hour of the course is devoted to the results of econometric analysis (i.e. testing of
hypotheses using regression analysis techniques) of the determinants of FDI flows. Students are
not required to use, to criticize or even to understand these techniques; for this topic only the
results are of interest.
Assignments and grading
Because there are only about 26 hours of class for this course, there is considerable
important material in the readings that cannot be covered in class. To get their money's worth,
students should try to read all the assigned readings. As an added incentive, students will be
accountable for all that reading on the two exams and in other written submissions.
The grade in the course will be based on two written examinations, and six written
submissions of cases and similar material.

The two examinations will each cover half of the course material, as described above. The
first will be during the week just before Spring vacation and the second during finals week.
Both will be take-home exams. Although the students will have several days to complete
them, the scope of the exams will be designed so that they can be done in only two hours of
intensive work. Each exam will make up 30 percent of the course grade.

In addition to the two exams, students will be required to submit six written assignments
which will be analyses of assigned cases or similar exercises. For these assignments the
students must form and work in groups; each group is to submit only one paper for each
assignment and the whole group will be graded on that paper. The groups must have at least
three, and no more than five students each. The average grade of the six short written case
analyses will count for 40 percent of each student's grade.
More information on the case assignments:

The case write-ups must be typed, and (with one exception) are limited to a maximum length
of four pages. They can be done in a very informal manner in order to be brief; devices such
as summary tables, bullet-point lists, etc. are acceptable. But you must use at least 10-point
type, because anything smaller is difficult to read.

While it is appropriate to come to conclusions about the questions posed by the cases, the
write ups should be analytical rather than promotional in nature; that is, they should not
support only one side of the questions. Rather, they should analyze all sides of the questions,
giving appropriate weight to all considerations regardless of whether the considerations tend
to support or not to support the final conclusions or recommendations you make. Be an
analyst, not a salesperson.

Don't use up much of the four page limit repeating material that is in the case. Your audience
is the instructors; you should assume that they already know everything that is in the case
(and any supplementary reading material that has been suggested); limit repetition to the
minimum necessary to explain your analysis and justify your conclusions.
2
date
Jan 27
Feb 3
Feb 10
Feb 17
Feb 24
Mar 3
Mar 10
topics
administrative matters
overview of the course: globalization
discuss definition of theories of FDI
FDI. (15 minutes)
discuss “EMI”
profitability criteria
in investment
decisions
discuss “Volvo I”
strategies and
structures
discuss “Gerber”
econometric studies
of determinants of
FDI
discuss “Benz”
risk and investment
decisions
globalization and
Q&A on first half of
competitiveness
course
Mar 13
discuss midterm
Mar 31
discuss “Canada”
Apr 7
discuss “Volvo II”
Apr 14
host country policy
framework and
strategies
discuss “Mexico”
Apr 28
May 6
exercise on definitions
(not to be graded)
*EMI and the CT Scanner(B)
Volvo in SAISANIA I
(not to be graded)
*Gerber/Poland
*Mercedes-Benz/USA
*midterm exam due at Economics Department office
Mar 17
Mar 24
Apr 21
case due at start of
class,* or exam
student debate on
MAI/Code of
Conduct
Spring vacation
developed country
issues
LDC issues. direct
*Canada in the 1990s
costs and benefits of
FDI
linkages; technology Volvo in SAISANIA II
transfer,
(not to be graded)
dependencia and
sovereignty
World Bank Group
and FDI
international legal
*Mexico/IBM
framework
Q&A on second half *negotiating the MAI/Code of
of course
Conduct
*second midterm due in Economics Department office
* designates assignments (cases or exams) to be written and graded. They are to be submitted
on the dates shown. Late submissions will not be accepted; if students cannot submit the
assignments when they are due, for any reason, they should arrange to hand them in early.
3
January 27
A. Administrative matters
B. Overview of the Course: Globalization
NOTE: FULL CITATIONS FOR ALL READINGS ARE IN THE
BIBLIOGRAPHY.
Readings:
Graham, “Foreign Direct Investment in the World Economy"
Julius, Global Companies and Public Policy, pp. 14-20.
Dunning, “The Advent of Alliance Capitalism,” Chapter 1 in Dunning and Hamdani, The
New Globalization and Developing Countries.
UNCTAD, Overview to World Investment Report, 1997. pp. 1-12
UNCTAD, World Investment Report, 1994, Chapter III. pp. 117 -158, and Chapter VII, pp.
277 - 312.
Questions for consideration:




What is foreign direct investment (FDI)?
What is a multinational corporation (MNC)?
In what ways are they becoming important?
Why do we care?
C. Readings for the non-graded exercise for next week:
IMF Balance of Payments Manual, pp. 86-90.
Foreign Investment Advisory Service, “Concepts and Measurement of Foreign Direct
Investment," (photocopy)
4
February 3
A. Discuss exercise on definition of FDI
B. Theories of FDI
Readings:
Markusen, “The Boundaries of Multinational Enterprises and the Theory of International
Trade,” especially pp. 169-175 and 181-184.
Hymer, “On Multinational Corporations and Foreign Direct Investment” (excerpts), UN
Library on TNCs, Vol. I, pp. 23-43.
Dunning, “Trade, Location of Economic Activity and the Multinational Enterprises”, UN
Library on TNCs, Vol. I, pp. 183-218.
Supplementary readings:
Coase, "The Nature of the Firm”, Economica (New Series), 1937, pp. 386-405.
Knickerbocker, Oligopolistic Reaction and Multinational Enterprise.
Vernon, “International Investment and International Trade in the Product Life Cycle, UN
Library on TNCs, Vol. I, pp. 44-60.
Aharoni, The Foreign Investment Decision Process, Chapters II and III.
Question for consideration:

Why do multinational corporations (MNCs) exist?
C. Case to be handed in and discussed next week:
EMI and the CT Scanner (B)
Questions for consideration:




Is EMI a monopolist? In what senses?
What were the major factors that determined EMI's decision to become a foreign
investor? (a) to invest anywhere abroad, rather than simply export from the home
country? (b) where to invest abroad? What about negative factors? Were those good
decisions?
What are the important sources of EMI's competitive strengths in the scanner market?
Its actual and potential weaknesses?
What should EMI do, and why?
5
February 10
A: Discuss “EMI”
B: Profitability Criteria in Investment Decisions
Readings:
Higgins, Analysis for Financial Management, Chapters 1, 7, and 8.
C. Non-graded exercise for next week
“Volvo in SAISANIA I” (handout)
Using the methods outlined in Higgins, does it make financial sense for Volvo to invest in
a small-scale plant in SAISANIA to produce its model S70 from ckd (completely knockeddown) kits imported from Sweden?
6
February 17
A. Discuss “Volvo I”
B. Multinational Strategy and Choice of Organizational Structure
Readings:
Mason, Miller and Weigel, International Business, Chapter 15, “Organizing for
International Production.”
World Investment Report, 1993, Chapters V and VI (pp. 115-155).
Stopford and Wells, Managing the Multinational Enterprise, pp. 9 - 29, 201- 202.
Egelhoff, “Strategy and Structure in Multinational Corporations: a Revision of the
Stopford and Wells Model.”
Supplementary reading:
Miller, Glen, Jaspersen and Karmokolias, "International Joint Ventures in Developing
Countries: Happy Marriages?"
Questions for consideration:



How can international production strategies be characterized?
What are the options for organizing international operations?
What factors determine the choice among these options?
C. Case to be handed in and discussed next week:
Gerber Products Company: Investing in the New Poland
Supplementary readings with case:
excerpts of two FIAS reports on Poland:
Foreign Direct Investment in Poland (1990).
Poland: The Environment for Foreign Direct Investment (A Brief Note), May 1994.
Students should analyze the case from three separate vantage points. The first two should get the
most attention in your write-ups:

Gerber management: How attractive is the Alima deal, and why is it attractive? (To do
this you should project cash flows and calculate one or more measures of return to Gerber
that you think might be important, such as internal rate of return, net present value of the
investment, payback period, etc. The case does not contain all the parameters needed for
this; where necessary you will need to make reasonable assumptions.) What are the
7
downside risks, and what if anything can be done to reduce them? What should Gerber
do?

Polish Government: What contributions are Gerber likely to make to Polish economic
development if it invests in Alima? What if anything could the Government do (in the
past; now; in the future) to increase such contributions? What are the risks for the
Government in allowing Gerber to buy Alima? What should the government do?

A student of FDI: What are the important aspects of the role of FDI in the transformation
of economies such as Poland? What have been the limitations on simply selling stateowned enterprises to local private ownership; i.e., has FDI been needed and if so for
what? From the viewpoint of a potential foreign investor, what are the potential pros and
cons of buying an existing enterprise vs. making a greenfield (i.e. completely new)
investment?
In this case your write-ups can be as long as six pages.
8
February 24
A: Discuss “Gerber”
B: Econometric Studies of Determinants of FDI
Readings:
(NB: students don't need to worry about the methodology or the details of any of these pieces.
Just read them for the overall concepts and results -- i.e. what variables do theory and experience
suggest should be important, and what do the econometric results say?)
Horst, "Firm and Industry Determinants of the Decision to Invest Abroad."
Mody and Srinivasan, "Trends and Determinants of Foreign Direct Investment: An
Empirical Analysis of US Investment Abroad."
__________, "Japanese and United States Firms as Foreign Investors: Do They March to
the Same Tune?"
Sader, Privatizing Public Enterprises and Foreign Investment in Developing Countries
excerpts from Explaining and Forecasting Regional Flows of Foreign Direct Investment,
United Nations, UNCTAD Programme on Transnational Corporations, 1993: pages 7-11,
37-39, and 41-42.
Supplementary Readings:
Agarwal, “Determinants of Foreign Direct Investment.”
Lizondo, "Foreign Direct Investment."
Miller, “Determinants of US Manufacturing Investments Abroad." Finance and
Development, Vol. 30, 1993, No. 1 pp. 16-18.
Singh and Jun, "Some New Evidence on Determinants of Foreign Direct Investment in
Developing Countries."
C. Case to be handed in and discussed next week:
Mercedes Benz. Harvard Business School Case # 5-394-140, March 22, 1994.
Questions for consideration:

What are the main factors driving the new M-B strategy outlined in the case? What are the
risks? Is this strategy likely to succeed?
9

To carry out the strategy, how should the company be organized: on a product-line,
regional, or matrix basis? What are the main factors that should determine the choice?
10
March 3
A. Discuss “Benz”
B. Risk and Investment Decisions
Readings:
Louis T. Wells “God and Fair Competition: Does the Foreign Investor in Emerging
Markets Face Still Other Risks?”
Louis T. Wells and Eric S. Gleason, “Is Foreign Infrastructure Investment Risky?”
11
March 10
A. Globalization and competitiveness
Readings:
Japan’s Automakers Face Endaka, Harvard Business School Case 9-796-030.
Porter, "Changing Patterns of International Competition”
UNCTAD, World Investment Report, 1996, Chapter III and parts A and B of Chapter IV
(pp. 73-112).
Supplementary reading:
Nunnenkamp et. al., Chapters I, II, and pp. 81-88 of Chapter V.
B: Student Questions and Discussion: Open Forum on the First Part of the Course.
12
March 24
A. Discuss the Midterm Exam
B. Policy Issues for Developed Countries
Readings:
Rodrik, Has Globalization Gone Too Far?
"Impact on Home Countries,", Chapter 3 of Transnational Corporations from Developing
Countries: Impact on their Home Countries, United Nations, Transnational Corporations
and Management Division, Department of Economic and Social Development, 1993 (pp.
57-80).
J. J. Servan-Schreiber, “The American Challenge” UN Library on TNCs, Volume 7, pp. 51
- 67.
Graham and Krugman, “Foreign Direct Investment in the United States” in UN Library on
TNCs, Vol. 7, pp. 252 - 283.
Julius, Global Companies and Public Policy, "Costs and benefits of inward investment,"
pp. 59-67.
Supplementary readings:
Krugman and Lawrence, “Trade, Jobs and Wages,” Scientific American
Vaitsos, Intercountry Income Distribution and Transnational Enterprises (Oxford, 1974),
Chapters 3 and 4 pp. 31 - 65.
Questions for consideration


Does it matter who owns it? sovereignty; dependency; ownership vs. control
Dividing the gains: taxation; transfer pricing
C. Case to be handed in and discussed next week:
Foreign Investment and Free Trade: Canada in the 1990s. Harvard Business School, case
9-793-032. Revised, October 27, 1994.
Questions for consideration:


What were Canada’s options at the time of the case?
Were these options affected by the fact that Canada was both a major outward investor
and a recipient of inward FDI?
What would your recommendations have been as an advisor to the Prime Minister?
13
March 31
A. Discuss “Canada”
B. Developing Country Issues: Direct Costs and Benefits of FDI
Readings:
Encarnation and Wells, "Evaluating Foreign Investment," Chapter 2 of Theodore H.
Moran et. al., Investing in Development: New Roles for Private Capital?, pp. 61-86. Also
in the UN Library on TNCs, Vol. 1, pp. 285-308.
IFC, "Calculating the Economic Rate of Return (ERR)."
Lall, “Introduction: Transnational Corporations and Economic Development”, in UN
Library on TNCs, Volume 3, pp. 1 - 27.
Vaitsos, Intercountry Income Distribution and Transnational Enterprises, Chapters 3 and 4
(pp. 31-65)
C. Ungraded exercise for next week
“Volvo in SAISANIA II” (handout)
For questions, see the handout.
14
April 7
A. Discuss “Volvo II”
B. Developing Country Host Issues: linkages, technology transfer, dependencia and
sovereignty, etc.
Readings:
Nunnenkamp et. al., Chapter VII and VIII
Battat et. al., The Links of Development: Backward Linkage Between Foreign and
Domestic Firms, FIAS Occasional Paper No. 6, 1996. Read at least the "Introduction," pp.
1-5. In conjunction with this item, see the handout from Michael Porter's The Competitive
Advantage of Nations.
Julius, Global Companies and Public Policy, Chapter 5: "Implications for Public Policy"
(pp. 93-108).
Lall, “Investment, Technology and International Competitiveness,” Chapter 8 in Dunning
and Hamdani, The New Globalization and Developing Countries.
Aharoni and Hirsch, “Enhancing Competitive Advantage in Technology-Intensive
Industries,” Chapter 9 in Dunning and Hamdani, The New Globalization and Developing
Countries.
Sunkel, “Big Business and 'Dependencia,' a Latin American View”, in UN Library on
TNCs, Volume 7, pp. 68 - 83.
15
April 14
A. Host country policy framework and strategies
Readings:
International Finance Corporation, Lessons of Experience Number 5: Foreign Direct
Investment, Chapter 4 (pp. 29 - 56).
Thomsen, “Attracting Investment in an Integrating World Economy,” Chapter 7 in
Dunning and Hamdani, The New Globalization and Developing Countries.
David Conklin and Donald Lecraw, “Restrictions on Foreign Ownership During 19841994: Developments and Alternative Policies.”
B. The World Bank Group and FDI
Readings:
World Bank Annual Report, 1977, pp. x-xi; Figure 1 on p. 5; 29-34.
IFC Annual Report, 1977, pp. vi-ix; 1-10.
FIAS Annual Report, 1977, pp. 1-14
International Finance Corporation, Lessons of Experience Number 5: Foreign Direct
Investment, Chapters 5 and 6 (pp. 57-84).
C. Case to be handed in and discussed next week
Mexico and the Microcomputers (A) (abridged), Harvard Business School case 9-390-093,
April 13, 1990
Supplementary reading materials with the case:
US Department of State, excerpts from description of Mexico (pp. 12-15), undated (1995).
photocopies of articles from The Economist and The Financial Times
Foreign Investment Law of Mexico, 1993 (English translation; photocopy).
Some questions to be addressed in analyzing the case:

What are the expected benefits and costs to Mexico of IBM's proposed investment?
(Answer to this need not be quantitative.) You may want to consider more than one
interest group or population segment in Mexico.
16

What does IBM want? Among other aspects, why does it insist on 100% ownership?

Just where, and in what respects, is IBM's position not compatible with Mexican
objectives?

What would you recommend that the Mexican government should do? What would
you recommend that IBM should do? Why?
17
April 21
A. Discuss “Mexico”
B. National and International Legal Framework.
Reading:
UNCTAD, World Investment Report, 1996, Chapters. V and VI, pp. 129 - 200.
Witherell, William, “The Multilateral Agreement on Investment (MAI) Negotiations: The
State of Play and Implications.”
OECD, Guidelines for Multinational Enterprises
United States Council for International Business, A Guide to the Multilateral Agreement
on Investment (MAI), January 1996.
Questions for consideration:




What are the main elements of national policies toward FDI?
How do international treaties, agreements, etc. constrain what national governments
can do?
Is there a need for a more comprehensive international legal framework?
Should there be a corresponding, binding, code of conduct for MNCs? What should be
in such a code? How could it be enacted and enforced?
C. Assignment to be handed in and discussed next week
Student Debate on Policy: "Negotiating a Multilateral Treaty on Investment and an International
Code of Conduct” that include disciplines on both MNCs and nations.
Each of the groups will have been pre-assigned to prepare a short written presentation consisting
of proposals for an international treaty regulating conduct of countries and conduct of MNCs.
Each group will be representing one of the following four different interest groups, viz.:




DC labor and consumer groups
LDC labor and consumer groups
owners of medium-sized domestic companies (DCs and LDCs)
MNCs
In class, four people -- one representing each of the four interest groups -- will make 10-minute
presentations, and then four others, again each representing one of the interest groups, will each
have 5 minutes to rebut aspects of the other groups' proposals with which they disagree.
Try to avoid rabid, extreme positions in your written and oral presentations. Remember that your
audience has just completed a course on this material at a graduate school of some repute.
18
April 28
A. Student debate on MAI/Code of Conduct
B: Student Questions and Discussion: Open Forum on the Second Part of the
Course.
19
BIBLIOGRAPHY
Agarwal, Jamuna P., “Determinants of Foreign Direct Investment,” Weltwirtschaftliches Archiv,
Vol. 116, 1980, pp. 739-773.
Aharoni, Yair, The Foreign Investment Decision Process, Boston, Harvard Business School,
1966.
Battat, Joseph, Isaiah Frank and Xiaofang Shen, Suppliers to Multinationals: Linkage Programs
to Strengthen Local Companies in Developing Countries, FIAS Occasional Paper No. 6,
World Bank, 1996.
Bergsten, C. Fred, Thomas Horst and Theodore H. Moran, American Multinationals and
American Interests, Brookings, 1978.
Buckley, Peter J. and Mark Casson (eds.), Multinational Enterprises in the World Economy,
Edward Elgar, 1992.
Coase, Ronald H., "The Nature of the Firm,” Economica (New Series), 1937, pp. 386-405.
Conklin, David and Donald Lecraw, “Restrictions on Foreign Ownership During 1984-1994:
Developments and Alternative Policies”, Transnational Corporations, Vol. 6, Number 1,
April 1997, pp. 1 - 30.
Dunning, John, “Trade, Location of Economic Activity and the Multinational Enterprises,” UN
Library on TNCs, Vol. I, pp. 183-218.
__________ and Khalil A. Hamdani, The New Globalism and Developing Countries, United
Nations University Press, 1997.
Egelhoff, “Strategy and Structure in Multinational Corporations: a Revision of the Stopford and
Wells Model” Strategic Management Journal 9 (1988), pp. 1 - 14. Reprinted in UN
Library on TNCs, Vol. 4, pp. 283 -302
Encarnation, Dennis, and Louis T. Wells, Jr., “Evaluating Foreign Investment” UN Library on
TNCs, Vol. 7, pp. 285 - 308.
Evans, Peter B., “Multinationals, State-Owned Corporations, and the Transformation of
Imperialism: A Brazilian Study,” Economic Development and Cultural Change, Vol. 26,
1977, Vol. 1, pp. 43-64.
Foreign Investment Advisory Service (FIAS), “Concepts and Measurement of Foreign Direct
Investment” (photocopy; no date; excerpts from a report to the Philippines).
__________, “Some Numbers on FDI,” photocopy.
20
Graham, Edward M., "Foreign Direct Investment in the World Economy," IMF Working Paper,
June 1995.
Graham, Edward M., and Paul Krugman, “Foreign Direct Investment in the United States” UN
Library on TNCs, Vol. 7, pp. 252 - 283.
Harvard Business School, Corning Glass Works: Indonesia, Case 9-381-119, revised September
1984.
__________, EMI and the CT Scanner (B), case 383-195, 1983.
__________, Mercedes Benz. Case 5-394-140, March 22, 1994
__________, Mexico and the Microcomputers (A) (abridged), case 9-390-093, April 13, 1990
Supplementary reading materials with the above case:
US Department of State, excerpts from description of Mexico (pp. 12-15), undated
(1995).
photocopies of articles about the case from The Economist and The Financial Times
Foreign Investment Law of Mexico, 1993 (English translation; photocopy).
__________, Foreign Investment and Free Trade: Canada in the 1990s., case 9-793-032. revised
October 27, 1994.
__________, Gerber Products Company, Investing in the New Poland, case 9-793-069, revised
July 18, 1994.
Supplementary reading materials with the above case: excerpts of two FIAS reports
on Poland:
Foreign Direct Investment in Poland (1990).
Poland: The Environment for Foreign Direct Investment (A Brief Note), May 1994.
__________, Japan’s Automakers Face Endaka, Case 9-796-030, January 19, 1996.
Higgins, Robert C., Analysis for Financial Management, fourth edition, Irwin, 1995.
Horst, Thomas, "Firm and Industry Determinants of the Decision to Invest Abroad," Review of
Economics and Statistics, August 1971, pp. 258-266.
Hymer, Stephen, “On Multinational Corporations and Foreign Direct Investment” (excerpts), UN
Library on TNCs, Vol. I.
21
International Finance Corporation, Annual Report, 1997 (excerpts).
__________, Lessons of Experience Number 5: Foreign Direct Investment, 1997.
__________, "Calculating the Economic Rate of Return (ERR)," no date, photocopy.
International Monetary Fund, Balance of Payments Manual, Fifth Edition, 1993 (excerpts, pp.
86-90).
Julius, DeAnne, Global Companies and Public Policy, Council of Foreign Relations, New York,
1990.
Knickerbocker, Frederick T., Oligopolistic Reaction and Multinational Enterprise, Harvard
Business School, 1973.
Krugman, Paul, and Robert Z. Lawrence, “Trade, Jobs and Wages,” Scientific American, Vol.
270, 1994, No. 4, pp. 22-27..
Lall, Sanjaya, “Introduction: Transnational Corporations and Economic Development,” UN
Library on TNCs, Vol. 3, pp. 1 - 27.
Lizondo, J. Saul, "Foreign Direct Investment," Chapter III in Determinants and Systemic
Consequences of International Capital Flows, Occasional Paper, International Monetary
Fund, Washington DC, March 1991.
Markusen, James R., “The Boundaries of Multinational Enterprises and the Theory of
International Trade,” Journal of Economic Perspectives, Vol. 9, No. 2, Spring 1995.
Mason, R. Hal, Robert R. Miller and Dale R. Weigel, International Business, Wiley, 2nd edition,
1981.
Miller, Robert R., “Determinants of US Manufacturing Investments Abroad," Finance and
Development, Vol. 30, 1993, No. 1 pp. 16-18.
Miller, Robert D., Jack D. Glen, Frederick Z. Jaspersen and Yannis Karmokolias, "International
Joint Ventures in Developing Countries: Happy Marriages?", International Finance
Corporation, Discussion Paper # 29, June 1996
Mody, Ashoka, and Krishna Srinivasan, "Trends and Determinants of Foreign Direct Investment:
An Empirical Analysis of US Investment Abroad," World Bank, preliminary draft,
December 1991.
__________, "Japanese and United States Firms as Foreign Investors: Do They March tot he
Same Tune?" photocopy, July 15, 1996.
Moran, Theodore M., "Introduction," UN Library on TNCs, Vol. 7
22
Nunnenkamp, Peter, Erich Gundlach and Jamuna P. Agarwal, Globalization of Production and
Markets, J.C.B. Mohr, 1994.
OECD, International Direct Investment Statistics Yearbook, [latest year].
__________, The OECD Guidelines for Multinational Enterprises, 1994.
Porter, Michael E., The Competitive Advantage of Nations, The Free Press, 1990.
Porter, Michael,” Changing Patterns of International Competition” California Management
Review (Winter 1986) pp. 9 - 40; Reprinted in UN Library on TNCs, Vol. 4, pp. 138 169.
Rodrik, Dani, Has Globalization Gone Too Far? Institute for International Economics, March
1997.
Sader, Frank, Privatizing Public Enterprises and Foreign Investment in Developing Countries,
1988-93, Foreign Investment Advisory Service (World Bank), Occasional Paper 5, July
1995.
Servan-Schreiber, Jean Jacques, “The American Challenge” UN Library on TNCs, Vol. 7, pp. 51
- 67.
Singh, Harinder and Kwang Jun, "Some New Evidence on Determinants of Foreign Direct
Investment in Developing Countries," Policy Research Working Paper 1531, World Bank,
International Economics Department, November 1955.
Stopford and Wells, Managing the Multinational Enterprise, reprinted in UN Library on TNCs,
Vol. 6, pp. 24-45.
Sunkel, Oswaldo, “Big Business and “Dependencia”, a Latin American View”, in UN Library on
TNCs, Vol. 7, pp. 68 - 83.
United Nations: an annual publication entitled "World Investment Report, [year]," years 1991
through 1996, published by different UN agencies, as follows:
UN Centre on Transnational Corporations, World Investment Report, 1991.
__________, ditto, 1992.
UN Conference on Trade and Development, ditto, 1993.
__________, ditto, 1994.
__________, ditto, 1995.
__________, ditto, 1996.
23
Overview, 1997
UN Transnational Corporations and Management Division, UN Library on Transnational
Corporations. A 20-volume set of reprints. (Referred to elsewhere in this syllabus as "UN
Library on TNCs.") Published by Routledge for the UN Especially:
Vol. 1: The Theory of Transnational Corporations, edited by John Dunning, 1993.
Vol. 3: Transnational Corporations and Economic Development, edited by Sanjaya Lall,
1993.
Vol. 4: Transnational Corporations and Business Strategy, edited by Donald J. Lecraw and
Allen J. Morrison, 1993.
Vol. 6: Organization of Transnational Corporations, edited by Gunnar Hedlund, 1993.
Vol. 7: Governments and Transnational Corporations, edited by Theodore H. Moran, 1993.
United Nations, UNCTAD Programme on Transnational Corporations, excerpts from Explaining
and Forecasting Regional Flows of Foreign Direct Investment, 1993.
United Nations, Transnational Corporations from Developing Countries: Impact on their Home
Countries, Transnational Corporations and Management Division, Department of
Economic and Social Development, 1993.
United States Council for International Business, A Guide to the Multilateral Agreement on
Investment (MAI), January 1996.
Vaitsos, Constantin, Intercountry Income Distribution and Transnational Enterprises, Oxford,
1974.
Vernon, Raymond, “International Investment and International Trade in the Product Life Cycle”,
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