This unique textbook provides a comprehensive critical analysis of modern theories, concepts and effects relating to transnational corporations and international production. Its user-friendly presentation includes boxes to highlight key concepts as well as suggestions for further reading. The text begins with a clear and concise discussion of basic concepts, and goes on to examine various theoretical approaches, topics and authors including: • Hymer, Vernon, Knickerbocker, Aliber, Dunning, Cantwell, Cowling and Sugden • the Internalisation Theory, the Scandinavian School, and the New Trade Theory approaches • Pre-WWII Marxist and neoclassical approaches to international investment. Finally, Grazia Ietto-Gillies deals with methodological issues in the assessment of effects as well as with specific effects on performance, labor, international trade and the balance of payments.