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Discussion 1
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Foreign Direct Investment
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Imagine you are in charge of development for a developing
country and were approached by a multina-tional corporation interested in
locating in your country.
Identify some of the benefits and some of the costs to
the host country from allowing a multinational corporation to locate in a
country with a developing economy. Discuss with your classmates if
developmental assistance from world developmental agencies, such as the World
Bank or the United Nations, would be preferable to private investment.
Reference: Chapter 17, section 17.5: Help From The
Private Sector: Multinationals.
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