Concluding Remarks

Abstract

Small and medium-sized transnational corporations (TNCs) have been important actors in the dramatic increases in outflows of foreign direct investment (FDI) since the mid-1980s partly driven by the need to be present abroad in a rapidly regionalizing or globalizing world economy. This suggest that small and medium-sized TNCs can be considered a complement to large TNCs in the transfer of productive resources and technology that enhance the growth and competitiveness of developing countries. Even if the impact of small and medium-sized TNCs in host developing countries maybe small in quantitative terms, qualitative effects of their activities are important and distinct from those of large TNCs: first, the technology offered by small and medium-sized TNCs are tend to associated with small and medium-sized TNCs in developing host countries to have higher laborur intensities compared to to those large TNCs, thus conforming better to existing factor endowments of developing countries; thirdly, small and medium-sized TNCs have higher tendency to cnclude joint ventures with local fims and (SMEs); and fouthly, a more positive impact of those firms on the balance of payments is likely, because of their export-oriented nature.