WIR08 presents the latest data on FDI and traces global and regional trends in FDI and in international production by TNCs. Global FDI inflows continued to rise in 2007 and reached a new record despite the onset of the financial and credit crisis. All the three major groups of economies - developed countries, developing countries, and the transition economies of South-East Europe and the Commonwealth of Independent States (CIS) - and virtually all regions saw continued growth in FDI. The crisis seems to have affected FDI flows in 2008, however, and TNCs recently appear to have become more cautious in their investment plans.