How have multinational corporations contributed to the development of LDCs? What successsful internal development projects have they implemented and in what countries?
What negative impact have they had?
Name the multinational and the positive/negative impact they have had.
Please cite your source.
I appreciate it could be a combination of the two!
2006-12-25 01:31:05 · 2 answers · asked by Rachael B 3 in Social Science ➔ Economics
'LDC' should be interpreted as a 'Less Developed Country' see http://en.wikipedia.org/wiki/Least_developed_countries for a list of those countries I'd like a comment on.
NB: this is not a question about what constitues a 'LDC'!
2006-12-25 02:08:45 · update #1
NB: This is also not a question about whether multinationals can be classified as a form of development. As stated above, it's about the positive and negative impact they have had.
Thanks.
2006-12-26 22:27:54 · update #2
I have one source where its a mixed record. For example in nigera mutinational oil companies go graesed the hands of the regime, and export the oil out without really taxing royatles to benefit the people. Here, one example of bad mutifnational, and goverment incomepetence, There are as well the shareholders of the petrochemical firms that use that oil, the military rulers of Nigeria that are essentially being bribed to give the multinational oil companies a free hand, and the handful of Nigerians and expatriates who have relatively good jobs working in Nigeria in the oil fields.
The people who benefit the least are those whose oil this is, the people of Akwa Ibom, Rivers, and Delta States, who live daily with the disruption, the noise, the pollution, and the corruption that the oil industry has spawned. They see little of the money. It goes elsewhere. And the result is classic exploitation of Africa by non-Africans. http://www.bidstrup.com/agony.htm . Free Market reform with uniform traiffs, flat taxes. Africa will have to find what works for them, and not for the imf necessary transpracy is what leads to oppounties and growth more than economic model. Basic freemarkets should be set up, but millitary leaders in curropt regimes need to taken out, and mutinationals bribing govt offical should be held account.
2006-12-25 18:45:01 · answer #1 · answered by ram456456 5 · 1⤊ 0⤋
They ARE development...
Joseph Schumpeter in his "Theory of Economic Development" defined development as any of the five cases, (1) creation of a new good or service, (2) introducing a new method of production (with "production" defined broadly and explicitly including new ways to conduct commerce), (3) developing a new market, (4) developing a new source of factors of production, and (5) substantial changes to industry organization, such as achieving a monopoly or breaking up an existing monopoly.
Multinationals do the majority of (3) and (4) in the world...
2006-12-26 12:16:09 · answer #2 · answered by NC 7 · 0⤊ 1⤋