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What is the failure effectiveness of multi-national companies (transnationals) in the promotion of development?
TNC FDI failure into hindering development:
• TNCs are accused of importing unsuitable technology.
• Conflict of stakeholder goals: TNCs maximise earnings, not workers society environment requirements
• TNCs shift funds to tax havens to decrease reported profits.
NGOs estimate transnationals ignore paying an evaluated $50Bn taxes yearly. Lost tax revenues mean less developed countries are less able to fund public and merit goods
• TNCs are effectively and powerful lobby governments and WTO than international trade legislation favours their interests.
What does Rostow predict? For Rostow: • Savings and capital accumulation (formation) are central to the procedure of growth therefore development • The solution to de
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the basic assumption of the static model
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