Government Regulations for Economic Growth
‘The best hope for developing countries to attain economic growth is through integration into the world economy. And their tool, if only they are willing to use it is the multinational company’. Discuss.
International Political Economy The best hope for developing countries to attain economic growth is through integration into the world economy. And their tool, if only they are willing to use it is…the multinational company’. Discuss
The presence and activities of multinationals (MNCs) in developing countries has been a subject of controversy in discussions on development, politics and economics. Renewed confidence in the positive benefits of MNCs has led many countries previously resisting MNCs in the 60s, 70s and 80s to be more open in the 90s . “Governments are liberalising MNCs regimes as they have come to associate MNCs with positive effects for economic development and poverty reduction in their countries.” Of course, in practice, objectives to attract MNCs differ by country and the impact of MNCs is not always desirable. However, economic growth and industrialisation combined with an increasingly globalized world enable MNCs to become a useful tool for economic growth.
This essay will assert that within a state planned strategy of growth, integration into the world economy through collaboration with MNCs can help developing countries grow economically. This essay will dispute the claims of dependency theorists who claim that integration into the world market must lead to underdevelopment and instead suggest a modern mercantilist perspective where development benefits from a mix of state and market is the best strategy for achieving economic growth. The question is not so much whether or not to use MNCs; the case for, is overwhelming. Rather, I suggest the more pertinent question is how to use MNCs as part of a focused strategy of growth.
A broad interpretation of multinationals (MNCs) will be used; a large company that operates in more
International Political Economy The best hope for developing countries to attain economic growth is through integration into the world economy. And their tool, if only they are willing to use it is…the multinational company’. Discuss
The presence and activities of multinationals (MNCs) in developing countries has been a subject of controversy in discussions on development, politics and economics. Renewed confidence in the positive benefits of MNCs has led many countries previously resisting MNCs in the 60s, 70s and 80s to be more open in the 90s . “Governments are liberalising MNCs regimes as they have come to associate MNCs with positive effects for economic development and poverty reduction in their countries.” Of course, in practice, objectives to attract MNCs differ by country and the impact of MNCs is not always desirable. However, economic growth and industrialisation combined with an increasingly globalized world enable MNCs to become a useful tool for economic growth.
This essay will assert that within a state planned strategy of growth, integration into the world economy through collaboration with MNCs can help developing countries grow economically. This essay will dispute the claims of dependency theorists who claim that integration into the world market must lead to underdevelopment and instead suggest a modern mercantilist perspective where development benefits from a mix of state and market is the best strategy for achieving economic growth. The question is not so much whether or not to use MNCs; the case for, is overwhelming. Rather, I suggest the more pertinent question is how to use MNCs as part of a focused strategy of growth.
A broad interpretation of multinationals (MNCs) will be used; a large company that operates in more
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