Buy custom multinational enterprises conflicts with host nations
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| Topic: |
Business
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| Number of pages / Number of words: |
7 / 1718 |
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This causes the multiplier effect to occur, allowing an increase in the countries economic wealth as more spending can occur. The technological advancements which MNE's bring to host nations enables emulation of the practices which ultimately can be transferred to other areas of production within the country...
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G = S/K. As countries try to gain stability by economic growth often a savings gap can occur. This is where a country cannot save enough income because economic growth is not at a higher enough level to keep up with population growth. FDI from MNE's can help combat this problem by directly financing the required investment...
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