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Multi-National Corporation Investment as an Object of State Economic Strategy

This paper discusses the attraction of multi-national corporation (MNC) investment as an emerging economic role for the state. First, the changing strategic environment of states is explored through consideration of the new importance of international investment and trade, the role of MNCs and the opportunities to shape the manufacturing and services structure which thus arise. Second, theories about MNC internationalisation are considered to identify strategic factors shaping their location decisions. The third section summarises recent findings on the economic attractiveness of states. The paper concludes with a brief survey of the approaches and organisational arrangements of states that have placed the pursuit of MNCs at the forefront of their development strategies.