This book evaluates the contribution of third world multinational enterprises to the competitiveness of their home and host countries in the context of Brazilian and Chilean MNE's. Third world MNE's can be important agents of growth, a fact that until now has been largely ignored in the literature. This book fills the gap in the literature by looking at third world MNE's ability to innovate and examining the potential for their innovations to be diffused to other home country firms and thereby improve their home country's competitiveness.