Developing countries are usually described as followers, with respect to developed ones, in the

accumulation of technological knowledge. For this reason, they are aften advised to attracted

foreign direct investment (FDI) of multinational corporations (MNC) to absorb technological

knowledge from abroad.

3.a) Are FDI from MNCs always source of technological progress for developing countries? (5 points)

3.b) Which are the most relevant channels through which technological knowledge could be

transferred from MNCs subsidiaries to domestic companies? (10 points)

3.c) Think at the different types of Global Value Chain (GVC) governance. Identify which is the best

and the worst form of GVC governance for the absorption of technological knowledge from the

point of view of a single partner company involved in a GVC (10 points).