Development economics

Table of Contents

1. Topic pack - Development economics - introduction
2. 4.1 Economic development (notes)
3. 4.1 Economic development (questions)
4. 4.2 Measuring Economic Development (notes)
5. 4.2 Measuring development (questions)
6. 4.3 The role of domestic factors in economic development (notes)
7. 4.3 The role of domestic factors in economic development (questions)
8. 4.4 The role of international trade (notes)
9. 4.4 The role of international trade (questions)
10. 4.5 The role of Foreign Direct Investment (FDI) (notes)
    1. Role of FDI - introduction
    2. Multinational Corporations
    3. The benefits of MNCs
    4. The problems of Multinational Enterprises
    5. Growth of importance of MNCs in recent decades
    6. Multinationals and monopoly power
    7. FDI: good or bad?
    8. Chinese foreign direct investment in Africa (video)
    9. Development - Pause for thought
11. 4.5 The role of foreign direct investment (questions)
12. 4.6 The role of foreign aid and multilaterial development assistance (notes)
13. 4.6 The role of foreign aid and multilateral development assistance (questions)
14. 4.7 The role of international debt (notes)
15. 4.7 The role of international debt (questions)
16. 4.8 The balance between markets and intervention (notes)
17. 4.8 The balance between markets and intervention (questions)
18. Print View

Growth of importance of MNCs in recent decades

Increasingly, giant MNCs have come to dominate markets on a world scale, such that they now account for a significant proportion of the world's output. This increase in importance may be attributed to various factors, including:

• The growth of international trade
• The trend towards globalisation
• The desire to achieve profit maximisation through economies of scale and strategies such as transfer pricing
• The growth of powerful economic blocs, e.g. the EU, NAFTA
• Advances in communications and information technology
• The liberalisation of former communist economies

Syllabus: Explain the characteristics of economically less developed countries that attract FDI, including:

• low cost factor inputs,
• a regulatory framework that favours profit repatriation and
  
• favourable tax rules.

Hopefully these are pretty self explanatory.