question archive Prepare this assignment according to the guidelines found in the APA Style Guide
Prepare this assignment according to the guidelines found in the APA Style Guide
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Prepare this assignment according to the guidelines found in the APA Style Guide. An abstract is required.
It can also have various favorable spillovers, like enhancing innovation and efficiency in local businesses, handing over new management and production and technological methods to the local industry, and providing higher-paying jobs for the local population.Yet, FDI could also have disadvantages to developing countries, especially if it is resource-based and the host country has weak government regulation. This paper argues that resourced-based FDI hinders the development of developing countries, especially if accompanied by a weak host government.
The first section provides a quick overview of the chosen topic or a summary of the disadvantages of MNCs to developing host countries that are later on thoroughly discussed in the paper. The second section generally analyzes the negative impact of resource-based FDI on developing countries. this part is divided into three subtopics: (1) conflict between extractive MNCs and developing host country. (2) dependency theory. and (3) adverse political, economic, and environmental impact of MNCs on developing host countries.
The last section briefly explores how weak the host government contributes to the adverse impact of FDI on developing countries. The academic sources or references used in this paper are peer-reviewed journals and scholarly books.Some scholars have reported the negative impact of resource-based FDI on the economic growth of developing countries. The local investment could be saturated and local entrepreneurship and competition could be inhibited. Resource-based FDI could heighten income disparity as established industries weaken, and employees from these industries may experience difficulties entering new ones.
Resource-based FDI may push the developing country to depend on the exploitation of indigenous resources of benefit to foreign investors rather than building other productive economic zones (Gould et al. 145). .
