MNCs part 2 - world. Since much of this is in the high-tech...

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The changing attitude toward MNC investment is, in part, attributable to the changing nature of FDI – in the 1950’s, for example, many MNC’s were primarily involved in resource extraction in the developing world – seen as a generally exploitive, low-paying sector, where natural resources were extracted and shipped to the developed world for manufacturing. As the economies of the developed world changed, manufacturing began moving to the developing world – labor was cheaper and so manufacturing shifted – some states, particularly the East Asian countries, took advantage of this and were able to develop through manufacturing for the developed world markets. More recently, we have seen a shift to service sector FDI – outsourcing call centers, etc to the developing
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Unformatted text preview: world. Since much of this is in the high-tech sector, countries like India have emphasized this as a possible route to greater development. One issue with MNC investment is the question of shallow vs deep integration globalization has led to a situation where deep integration is practiced MNCs become heavily invested, and therefore tied to, the economies of states they invest in unlike shallow integration, where an MNC could simply move production to another state easily, the type of investment and the scale of investment requires a greater level of commitment on the part of the MNC they have to train workers, develop production sites, etc. This, for the liberals, benefits the economy of the developing country....
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This note was uploaded on 11/25/2011 for the course POLISCI 1003 taught by Professor Olson during the Fall '11 term at GWU.

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