Case Study:
Foreign Direct Investment
Imagine you are in charge of development for a developing country and were approached by a multinational corporation interested in locating in your country.
Question 1. Identify some of the benefits and some of the costs to the host country from allowing a multinational corporation to locate in a country with a developing economy. Discuss with your classmates if developmental assistance from world developmental agencies, such as the World Bank or the United Nations, would be preferable to private investment.
Reference: Chapter section: Help From The Private Sector: Multinationals.
Question 2. Discuss how the concerns listed in their posts regarding private foreign investment could be alleviated through aide from world development agencies.
Economies in Transition
The movement in the direction of a market-based system with freely determined prices, competition, profits, private ownership, and other features of capitalism is not simple. Discuss some of the challenges associated with an economy transitioning from socialism to capitalism.
Reference: Chapter: World Economic Systems, and section 20.2: Transition to a Market System.