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What is the success effectiveness of multi-national companies (transnationals) in the promotion of development?
TNC FDI success into promoting development:
• Introduces modern resources into a LDC along with no local opportunity cost of foregone utilization
• Resultant multiplier result
• TNCs bring employment and training within modern management and production techniques. High wages by local but low by developed countries standards.
• Knowledge spill over FDI introduces modern technologies which eventually transfer to local firms by labour turnover
• Creates forward and backward linkages in between multinational and host-economy firms
• Enhance local infrastructure for example road, telecommunications as positive externalities.
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