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By V. N. Balasubramanyam

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MTUC, 2002. Report of the General Council 1999-2001. Kuala Lumpur. , 1999. “Electronic Workers: Their 25 Years of Struggle to Establish an Industrial Union, MTUC 50th Anniversary Publication”, Kuala Lumpur. Ramasamy, P. 2002b. “Labour and Trade Unionism in Malaysia”, Paper presented at the Australian National University” Ramasamy, P. 2002a. “Migrant Labour in Malaysia” Dr Kamarudin M. Said – Positive Labour Relations in a Globalized Economy. 50 INVESTMENT FRAMEWORK FOR DEVELOPMENT IN THE WTO AND OECD CONTRIBUTION ON CORPORATE RESPONSABILITY Robert Madelin Director, Directorate General for Trade, European Commission Investment in WTO: towards a rules-based system Investment, development and trade are inextricably linked.

The side effects have been found to include the distributional consequences of enterprise restructuring; competition effects where foreign entry results in greater market concentration; and balance of payments volatility in response to the import and export patterns of foreign-owned enterprises. It must, however, be stressed that most such “costs” are generally of a short duration and can be corrected through appropriate host country policy measures. 29 The report focuses on the overall effect of FDI on macroeconomic growth and other welfareenhancing processes.

Authorities can contribute to a positive outcome by encouraging MNEs to consider the technological needs of host countries. The OECD Guidelines for Multinational Enterprises, which adhering countries are committed to promote, stipulate that enterprises should adopt practices that “permit the transfer and rapid diffusion of technologies and know-how, with due regard to the protection of intellectual property rights”. Another area of action relates to improving the synergies between FDI flows and official development assistance.

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