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FDI is ultimately a great thing, this is because MNC's that are already profitable can add to the local economy by using more efficient technology to strengthen the local economy. They will also hire and train the local workforce and hence the locals will have extra income to raise their standards of living. The Tax money of these MNC's will also contribute to the growth of the nation. When Oil was first discovered in Saudi Arabia, it's economy, social structure and human rights were severely underdeveloped, today the economy has improved drastically. After a while texan and Californian Oil companies began drilling in Saudi Arabia, which later became the Arabian American Oil company. This strengthened the Saudi Economy and brought in much needed Tax revenue for the country. For example the government is distributing $180 billion to it's populace this year from their oil money. In-addition the Global economy benefits because it now has the supply of oil had risen.
Alexander EDDe
I am probably a good person but I haven't taken the time to fill out my profile, so you'll never know! |