**89** The coordination of policymaking for trade and<sup>FDIis not entirelynew.Infact,it hasprobablyoccurred</sup> more among developing countries, than among developed<sup>countries.See UNCTAD(1996c:116-118).</sup> **90** An example is Honda's network of operations in<sup>motorcycles.Ratherthan startingitsentry intoEurope</sup> with exports, which was its conventional method,<sup>it usedFDI very earlyonand integrateditsEU</sup> operations by taking advantage of the increasingly liberalized<sup>frameworkthere.(UNCTAD (1996c:101).</sup> **91** Balasubramanyam (2002: 191) 92 UNCTAD (2002c: 24) and (1998: 91)

93 Originally conceptualized by Kaname Akamatsu<sup>in the1930s.</sup> 94 See Ozawa (1999) for a detailed discussion of the<sup>"flying geese"paradigm andhow it ledto the</sup> development of East Asia.

95 "During 1998-2000, the Triad accounted<sup>for three-quartersof globalFDI inflowsand85percentof</sup> outflows, and for 59 per cent of inward and 78 per cent of<sup>outwardFDIstocks."[UNCTAD(2001:9)]</sup> 96 UNCTAD's "transnationality index" for a country is<sup>based ontwo FDI variables(i.e.,FDI inflowsas a</sup> percentage of gross fixed capital formation and FDI<sup>inwardstockasa percentageof GDP) andtwo</sup> variables related to foreign firms' operations in a host country<sup>(i.e.,value added byforeignaffiliatesasa</sup> percentage of GDP and employment by foreign<sup>affiliatesas a percentageof totalemployment.)The index</sup> is also applied to individual firms and in this<sup>caseis the averageof three ratios: foreignassets/totalassets,</sup> foreign sales/total sales and foreign employment/total<sup>employment.[SeeUNCTAD(2002c)for further</sup> details.] 97 UNCTAD (2002c: 61-62)

**98** "The largest 20 companies most actively involved<sup>in cross-border M&As accountedfor one-fifthof the</sup> total value of cross-border M&A deals during the past<sup>15 years:1987 -2001."UNCTAD (2002c:89).</sup> h OECD (2002: 50)

**'°** UNCTAD (2002c: 60-6 1)

**101** UNCTAD (2002c: 20-21)

**102** UNCTAD (2002c: 102)

**103** This index is "calculated as the ratio of the number of<sup>foreigncountries(N)in whichaTNCoperates</sup> wholly-owned affiliates to the number of foreign<sup>countries(N*)in which itcouldpotentiallyoperate. The</sup> latter number is calculated for the countries (excluding<sup>the homecountry)whichhada positive FDI stock</sup> in 2001, defining them as potential locations for FDI. All<sup>inall,this covered187countries."[UNCTAD</sup> (2002c: 109)]

04 See Table IV.2. on page 89 and Figure IV.9.<sup>on page110of UNCTAD (2002c).</sup> **105** UNCTAD (2002c: 109-10)

**106** UNCTAD (2002c: 143) **107** UNCTAD (2002c: 149) **108** UNCTAD (2002c: 149-150)

**109** A brief summary of these three industries, taken from<sup>UNCTAD (2002b: Annex3 toChapterIII,99-</sup> Ill), is presented here. See original publication for<sup>further details.</sup> **110** UNCTAD (2002b: 100)

1 This was in part because of their centralized management<sup>structure,the long timerequiredin</sup> establishing local supplier relationships and their<sup>preferencefor in-housecomponentdesign.</sup> **112** UNCTAD (2002b: 103-4) '3 UNCTAD (2002b: 105) **114** UNCTAD (2002b: 108)

**115** Romijn, Van Assouw and Mortimore (2000:<sup>139)</sup> 116 UNCTAD (2002c: Annex table B.4., p316-317) **117** Lawrence (2002) **118** See Arndt (2001: 26) **119** See also Jones and Kierzkowski (2001:<sup>32-33).</sup> **120** Amdt (2001: 32) **121** See Cheng, Qiu and Tan (2001: 182-185) 122 See section on Regional Agreements above. **'2** Arndt (2001: 26) **124** Wain (2002) **'2** Frankel (2000: 20)

124