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THE ROLE of foreign TNCs in the economic development process of the Third World countries has been a subject of continuous debates. A relatively new and evolving approach that recognized uneven development in the Third World as being one of a number of inevitable outcomes of the activities of foreign TNCs is the Internationalization of Capital approach. 
    Using the approach as a theoretical framework, the author examines in considerable detail the causes and consequences of the operations of foreign electronics TNCs on the Malaysian industrialization process. He also assesses the contribution of the electronics TNCs towards the occurrence of "genuine development" in Malaysia. In addition he also discusses the factors that may have contributed to the differences in the outcomes of the operations of foreign capital in Malaysia and in the East Asian NICs.

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