During the 1990s globalization was threatened by banking and currency crises in Mexico, Asia, Russia and Brazil; the collapse of OECD efforts to develop a multinational agreement on investment; and the derailment of the WTO’s trade liberalization efforts during the Battle of Seattle in 1999. Yet none of these events had more than a momentary effect on the mergers and acquisition activities which constitute the major share of cross-border, non-portfolio global capital flows. From 1990 to 1999 annual world foreign direct investment grew from about $200 billion to over $800 billion. Almost 75 percent of these flows consisted of European and American corporations buying and selling each other. Even so, in 1999 $198 billion was associated with developing countries, 500 percent more than in 1990. The globalization process is now well under way, and the engines pulling it along are the 53,000 multinational corporations, whose foreign revenues account for 7 percent of world gross domestic product. 1 These companies control 450,000 affiliates and subsidiaries, an average of nine each, suggesting that most MNCs are medium-sized firms that may have to get bigger to survive in an Internet-driven world of the kind described in Chapter 11. Their affiliates’ revenues are growing faster than world trade, an indication that entrenching themselves in host-country markets is their goal rather than exporting back to the home country. Mostly they are American, European, and Japanese manufacturers seeking to get closer to foreign customers in an increasingly competitive world where deep knowledge of end-user needs spells out the difference between success and failure, but they also are expanding into service businesses such as distribution and marketing.