This study is a contribution to the debate on how developing countries are facing the competitiveness challenge, and coping with globalization. It traces the role that foreign direct investment has played in developing the garments, colour television receivers and automobile industries in Argentina, Brazil, Costa Rica, Dominican Republic, Malaysia, Mexico, Morocco and Thailand. It also compares the role that foreign direct investment has played in Chile and Zimbabwe as these countries developed their natural-resource-based industries. The book’s advantage is that the analysis straddles three levels: the micro-level effect on individual firms the meso-level impact on the industry; and the responses at the macro level; namely the policies adopted by developing country Governments. It therefore allows a comprehensive view of the interlocking needs of firms, industries, and the macro-economy.