Global companies and governments of various countries

Author: Edward M. Graham
Publisher:
Publish Date: 2000-01-01
Features: Introduction Foreign direct investment has become a major component of the world economy. The offshore production of multinational companies has far surpassed international trade, with a significant portion of international trade actually occurring between these global enterprises. However, compared to trade, foreign direct investment is still far from being fully understood. Since the 1970s, much of the debate has centered on whether international investment is a good thing and which—government or company—holds the dominant position. Moreover, there are no global rules or relevant institutions to regulate foreign direct investment, whereas trade issues are addressed through the World Trade Organization, monetary issues through the International Monetary Fund, and development financing through the World Bank. This book aims to fill two gaps. At the analytical level, it highlights two growing conflicts: the pursuit of different objectives by national governments and globalizing companies, leading to conflict between them; and competition among different governments to attract foreign direct investment, thus creating conflict. At the policy level, the book reviews previous international agreements and proposes a new institution to help address broader, emerging issues.