Forms of Foreign Investment
    •Portfolio investment
        ­ Financial investment
    •Direct investment
        ­ Either as foreign ownership or as subsidiary
        ­ Investment in the ability to do business

History of Foreign Investment
    •Resource exploitation
    •Portfolio investment and foreign infrastructure
    •The evolution of MNCs
        ­ Resources
        ­ Protectionism
        ­ Tax incentives
        ­ Globalization

Reasons for MNC Investment
    •Resources
    •Markets
    •Labor
    •Regulation
•What are the benefits of each?
        ­ From the MNC’s perspective
        ­ From the host government’s perspective?

MNCs and Power
    •MNCs, sovereignty, and developing countries
    •Home government control and host government control
    •National regulation versus international regulation
    •MNCs and publicity

Critiques of MNCs
    •MNCs and democracy
    •MNCs and neocolonialism
    •MNCs and indigenous production
    •MNCs and regulatory races to the bottom
        ­ Tax havens and pollution havens