The World Investment Report 1997, the seventh in this series, examines the relationship between FDI and competition.

As countries everywhere remove legislative obstacles for FDI, they face new challenges in terms of ensuring the proper functioning of markets. TNCs can render the structure of the markets of recipient countries more competitive, but that is not assured in and by itself. In a globalizing and liberalizing world, the scope of markets transcends national boundaries and complicates the relationship between FDI and competition. More than ever before, competition policy has a key role to play in this respect, the Report argues.