“…They do so primarily because of the high multiplier effects of the industry in both employment and economic growth. Moreover, most nation states, in particular the developing countries, have actively intervened in the development of the industry by relying on various industrial and trade policies (e.g., Barnes and Kaplinsky, 2000;Pavlínek, 2000Pavlínek, , 2002Pavlínek, , 2003Pavlínek, , 2006Yoshimatsu, 2000;Harwit, 2001;Humphrey, 2003;Liu and Dicken, 2006;Egresi, 2007). Over the last several decades, the development of the automobile industry in these countries can be understood to a large extent through the interactions and bargaining relationships between nation states and TNCs.…”