From United Nations University

The current (1990s) role of TNCs in the world economy

3.1 Introduction: a cautionary note
   a) alternative measures of TNC activity - FDI, capital stake,
      foreign production, sales, employment and profits

   b) measuring non equity TNC participation (sales, value of
      contracts, royalties, fees, etc)

   c) sources of data; international, regional, national, industry
      from level

   d) deficiencies of national data
     i) no standard definition of FDI or capital stake by countries
    ii) differences in accounting and reporting procedures
   iii) difficulties in making comparisons over time/changing
        definitions, sample compositions etc.

   e) data on individual TNCs

3.2 Major features of TNC activity in the 1970s, 1980s and 1990s
   a) the increasing role of TNCs in the world economy

   b) growing diversity of home country investors

   c) falling share of TNC investment directed to some developing
      countries, and Africa and Latin America in particular

   d) increase in cross-hauling of TNC activity, particularly among
      developed countries
     i) inward and outward flaws of FDI
    ii) intra-industry international production

   e) the restructuring of TNC activity through acquisitions and
      mergers -particularly within the Triad ( viz. North America,
      Western Europe and Japan)

   f) the sharp increase of growth of TNC activity in the service
      sector

   g) increasing contribution of foreign operations to total TNC
      production, sales, employment and income; especially since
      1985

   h) increasing product and process diversification by TNCs

   i) growth of joint ventures and non-equity arrangements involving
      developing countries; expansion of strategic alliances among
      TNCs in developed countries

   j) emergence of developing countries and COMECON countries as
      exporters of capital

   k) noticeable increase in new foreign ventures undertaken by small
      or medium size TNCs

   l) increasing global perceptions on part of leading TNCs yet
      recognition of local needs and aspirations

3.3 The geographical distribution of TNC involvement
   a) the share of developing countries

   b) concentration of FDI in high income developing countries

   c) FDI in Africa

   d) FDI trends in different Latin American and Asian countries

3.4 The sectoral composition of TNC involvement
   a) increasing importance of TNC activity in the manufacturing
      and service sectors

   b) reduced role of FDI in resource based sectors (exception is
      in Africa which accounts for 40% of FDI in developing
      countries)

   c) the industrial pattern of TNC activity: comparisons between
      structure of FDI in developed and developing countries

   d) comparisons and contrasts between the sectoral composition
      of TNC activity in the African region and other developing
      countries

3.5 The ownership pattern of TNC involvement
   a) details of equity stake (and changes in same) of leading
      international investing countries; and how this varies by
      country and/or industry of destination

   b) the effect of home and host government policies on ownership
      patterns

   c) ownership patterns of TNCs in the Africa region
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Dicken(1986)
US Department of Commerce(1984)
UNCTC(1978) (1983) (1984)
Stopford and Dunning(1983)
Rugman, Lecraw and Booth(1985)
Dunning and Pearce(1985)
Dunning and Cantwell(1987)
ESCAP(1986)
Hill and Johns(1985)
OECD(1987)
CEPAL(1987)
Lichtensztejn & Trajtenberg(1987)

See Bibliography
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