Question: I have this question that i need help with. evaluate the impact of multinationals on the economic development of countries such as Indonesia Some points

I have this question that i need help with.

evaluate the impact of multinationals on the economic development of countries such as Indonesia

Some points i can use

National Impacts:

  1. FDI
  2. Balance of Payments
  3. Technology/SkillsTransfer
  4. Consumer Choice
  5. Business Culture/McDonaldization
  6. Tax Revenues/Transfer Pricing/Capital Flight

Local Impacts:

Local labour and job creation

New jobs are created directly by the MNC.

Risk that localbusiness will be forced out > fall in jobs.

Wages and working conditions

Often higher pay/better conditions

Jobs often low skilled/monotonous

Local community and environment

Invest in infrastructure. Raises living standards for community via multiplier effect.

Drain on limited resources, can cause local devastation.

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