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.

date Jan 27 Feb 3 Feb 10 Feb 17 Feb 24 Mar 3 Mar 10 Mar 13 Mar 17 Mar 24 Mar 31 Apr 7 discuss midterm discuss Canada discuss Volvo II

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

case due at start of class,* or exam 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 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

Apr 14 Apr 21 Apr 28

host country policy framework and strategies discuss Mexico student debate on MAI/Code of Conduct

May 6

* 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.

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)

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?

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 knocked-down) kits imported from Sweden?

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 downside risks, and what if anything can be done to reduce them? What should Gerber do? 7

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.

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? 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? 9

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?

10

March 10 A. Globalization and competitiveness Readings: Japans 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.

11

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 Canadas 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?

12

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.

13

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.

14

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 1984-1994: 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. What does IBM want? Among other aspects, why does it insist on 100% ownership? 15

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?

16

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.

17

April 28 A. Student debate on MAI/Code of Conduct B: Student Questions and Discussion: Open Forum on the Second Part of the Course.

18

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. Graham, Edward M., "Foreign Direct Investment in the World Economy," IMF Working Paper, June 1995. 19

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. __________, Japans 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. 258266. Hymer, Stephen, On Multinational Corporations and Foreign Direct Investment (excerpts), UN Library on TNCs, Vol. I. International Finance Corporation, Annual Report, 1997 (excerpts). __________, Lessons of Experience Number 5: Foreign Direct Investment, 1997.

20

__________, "Calculating the Economic Rate of Return (ERR)," no date, photocopy. International Monetary Fund, Balance of Payments Manual, Fifth Edition, 1993 (excerpts, pp. 8690). 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 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]. 21

__________, 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. 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: 22

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, Quarterly Journal of Economics, 80: 190-207 (1966). Reprinted in UN Library on TNCs, Vol. I, pp. 44-60. Wells, Louis T., God and Fair Competition: Does the Foreign Investor in Emerging Markets Face Still Other Risks? draft, processed, 1997. Wells, Louis T. and Eric S. Gleason, Is Foreign Infrastructure Investment Risky? in Harvard Business Review, September/October 1995, pp. 46 ff. Witherell, William, The Multilateral Agreement on Investment (MAI) Negotiations: The State of Play and Implications, excerpts from a speech, September 1, 1997. World Bank, Annual Report 1997 (excerpts).

23