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ILOVECON
| Reward Points: | 1 |
| Efficiency:
Efficiency is a measure of the effectiveness of your arguments. It is the number of up votes divided by the total number of votes you have (percentage of votes that are positive). Choose your words carefully so your efficiency score will remain high. | 75% |
| Arguments: | 1 |
| Debates: | 0 |
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FDI stimulates growth for developing countries. By allowing foreign MNC's in to the country, developing countries can benefit from their knowledge, experience and technology in order to encourage their own future domestic businesses to start up in similar industries, whilst at the time of FDI from the MNC, providing jobs and training to their domestic population. This stimulates both growth in the short term as people in jobs can then increase savings, escaping poverty traps and encouraging investment which can increase economic growth, and in the long term can help start up new businesses domestically as a result of the knowledge transfer occuring from the FDI. For example, high speed trains were originally produced mainly by European companies but with their FDI in developing countries, the transfer of knowledge, particularly to places like China, has enabled domestic businesses to start up offering the same construction projects of high speed trains at home
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