Introduction and Statement of the Issues
In the last 20 years the attitudes of policy-makers towards multinational enterprises (MNEs), together with the issues preoccupying researchers, have undergone profound shifts. Development policy in the 1960s and 1970s were frequently predicated upon the notion that international trade inevitably brought dependence on foreign (developed) economies. Accordingly the trade policy of many less developed countries (LDCs) was designed to close off their economies, typically employing tariff protection. One result of this was that MNEs were induced to set up local production within these LDC markets to substitute for the exports they had lost.