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In today's society Multinational enterprises play an important part in World Trade. (Hirst, Thompson, 1999, p.68/9) says there are around 45,000 parent companies, with around 280,000 affiliates (World Investment Report 1997). Outward Foreign Direct Investment stocks stand at about $3.2 trillion along with $7 trillion Domestic and Foreign Sales and Arm length trade is $5.2 trillion. This is a massive amount of investment and in the USA 80% of trade is made by Multinational Enterprises, half of which is between Multinationals i.e. Intra Multinational. 100 largest multinationals have 20% of the total global foreign assets accounting for $2 trillion. The production of Multinational affiliates is phenomenal accounting for 5.4% of GDP in developed economies and stands even higher in developing economies at 9.1% of GDP. Inward flows of FDI in gross domestic fixed capital formation was equal to 4.4% of developed economies and 8.2% of developing economies. These statistics help...

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