text: development efforts. The forces of technological change have overtaken the widely accepted product life-cycle theory that explained much of the early foreign direct investment in manufacturing industries, especially those originating in the United States in the 1960s and into the 1970s. Now, competitive pressures from rapid technological innovation have compressed the theory's hypothesized time sequences to such a degree that the phased trade and investment decisions of the past are no longer possible. 21 16. On the other hand, foreign investment to developing countries has stagnated, concentrating itself in a handful of relatively advanced industrializing countries . The developing world's share of direct investment stock dropped from over 30 per cent in 1967 to roughly a one quarter share in the 1970s and early 1980s. . Well over three fourths of foreign direct investment flows in the 1980s moved among countries of the Organisation for Economic Co-operation and Development (OECD), while some 86 per cent of the remainder went to only 18 developing countries an~ territories. This uneven distribution is accounted for by the concentration of foreign direct investment in countries that have abundant natural resources, large domestic markets and/or abundant skilled but still relatively low-cost labour. While over one half of the total inward stock of foreign direct investment in developing countries is in the western hemisphere, the fastest annual growth rates occur in a few rapidly industrializing Asian countries. 10/ 17. Technological change also accounts for some of the reduced attractiveness of many traditional host and other developing countries to foreign investors . Discoveries in new materials and processes lower demand for many of the ra~ materials traditionally supplied by developing countries. Automation and quality-control requirements make unskilled and semi-skilled labour a relatively less important component of manufacturing costs, decreasing the advantage of locating operations in labour-surplus countries. Few developing countries offer 
analysis: The text discusses the impact of technological change on foreign direct investment, particularly in developing countries. It highlights the reduced attractiveness of many traditional host countries to foreign investors due to advancements in materials and processes, automation, and quality-control requirements. The text also mentions the concentration of foreign direct investment in countries with abundant natural resources, large domestic markets, and skilled but low-cost labor. These points suggest that the text is primarily focused on economic development and international trade.