In This Review

Third World Multinationals: The Rise of Foreign Investment From Developing Countries
Third World Multinationals: The Rise of Foreign Investment From Developing Countries
By Louis T. Wells, Jr.
MIT Press, 1983, 206 pp.

For reasons not too different from those that explain the growth of multinational enterprises in the older industrial countries, entrepreneurs in developing countries are increasingly investing abroad. Professor Wells of the Harvard Business School has found data on about 1,000 of these enterprises. First-hand inquiry, analysis of the data base and a thorough understanding of the experience of the older economies combine to produce a most interesting set of comparisons and contrasts on behavior, motives, technology transfer, government policies, and the advantages and disadvantages of working in developing countries. From this major contribution to our knowledge of the international economy, Professor Wells feels one can draw only tentative general conclusions, but his guess is that "the spread of foreign investors from developing countries is, in net, beneficial to the development process and to international relations."