Imagine you oversee a developing country’s growth and have been approached by a multinational corporation interested in locating in your country. Prior to beginning work on this discussion, read Chapter 16, especially examining Section 16.5, and respond to the following components:
- Describe a multinational corporation and foreign direct investment (FDI).
- Identify some benefits and costs for the host country from allowing a multinational corporation to locate there, despite its developing economy.
- Evaluate whether developmental assistance from world developmental agencies, such as the World Bank or the United Nations, would be preferable to private investment.
- What would you decide between developmental agency assistance or private investment, such as FDI from multinational corporations? Why? Explain.
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