The world economy is undergoing significant changes as multinational enterprises play an increasingly important role in the generation of economic wealth. This book examines the dynamic relationship between forign direct investment, governments and economic development. It demonstrates the nature of their interaction through a set of eleven studies at various stages of development. The volume describes the catalytic role governments and multinationals play in determining the evolution, restructuring and upgrading of the competitive and comparative advantages of countries. The fact that multinationals' activities and government policy are highly interdependent is highlighted in the country studies. The countries examined include the UK, USA, Sweden, Japan, New Zealand, Mexico, Spain, Taiwan, India, Indonesia and China. The increasing globalization of production and the crucial role of technology in enhancing the competitive advantages of both firms and countries at all stages of economic development is firmly demonstrated with a detailed, in-depth evaluation of the chosen countries. Michele E.M. Akoorie, Senior Lecturer, University of Waikato, New Zealand; Daniel Van Den Bulcke, University of Antwerp and Ghent, Belgium; Alvaro Calderon, Institute for Europea