question archive Write an article on impact of multinational firms on the economic development Paper must be at least 2000 words
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Write an article on impact of multinational firms on the economic development Paper must be at least 2000 words. Please, no plagiarized work!
The process of intern?tion?liz?tion of loc?l org?niz?tions ?nd tr?nsform?tion of org?niz?tions to multin?tion?l firms h?s different imp?cts on the economy of n?tions. P?rticul?rly flows of foreign direct investment (FDI) h?ve incre?sed r?pidly during the p?st dec?de ?nd imp?cted the economy of developing countries: in 2004, developing countries received 37.2 percent of the glob?l flows of FDI th?t equ?ls to $147 billion (World Investment Report 2005). Furthermore, given the rel?tively sm?ll economic size of these economies, even ? sm?ll ?mount of foreign investment c?n ?ccount for ? l?rge percent?ge of their tot?l investment ?nd therefore gener?te ? signific?nt imp?ct.
The spre?d of multin?tion?l firms w?s often viewed with suspicion ?nd mistrust in such countries, p?rticul?rly in those th?t pursued ? str?tegy of import substitution. In this p?per, I will t?ke ? look ?t both positive ?nd neg?tive effects of multin?tion?l firms on the economies of developing n?tions. I will ?rgue th?t such comp?nies through their ?ctivity provide FDI in the economies th?t ?re still under development ?nd spe?k ?bout pros ?nd cons of the glob?liz?tion in fr?mes of multin?tion?l firms.
The concept of link?ges will be discussed in order to underst?nd the link between the multin?tion?l firm ?nd the effect intern?tion?liz?tion on the economies of developing n?tions. Multiple m?rket forces ?re behind the observed growth of multin?tion?l firms: reduction in costs of communic?tion h?s e?sed the constr?ints on glob?l r?tion?liz?tion of production ?nd the inform?tion technology revolution h?s cre?ted m?rkets for m?ny new products ?nd services. Incre?sed world tr?de in services h?s further contributed to glob?liz?tion of multin?tion?l firms since services often require suppliers to h?ve ? physic?l presence in ? m?rket.
However, ch?nges in the m?rket environment do not c?pture the whole story.