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That is not necessary. If the type of business is extremely specialized, they will not spend millions in training. Rather, they will continue to hire employees from their own country, for a short period and then replace them with foreign employees. Your hypothesis is true only for mass market goods.
Countries benefit from technology introduced by MNCs only theoretically. In reality, the MNC will try its best to prevent sharing its innovative technology. Sharing it will lead to the creation of competitors, which will eat into the MNC firm's profit and revenue. As such, the MNC will try to keep its technology to itself. For example, 90% of R&D;costs of American companies are spent in the US itself
I am probably a good person but I haven't taken the time to fill out my profile, so you'll never know! |