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Multinationals and Development$
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Alan M. Rugman and Jonathan P. Doh

Print publication date: 2008

Print ISBN-13: 9780300115611

Published to Yale Scholarship Online: October 2013

DOI: 10.12987/yale/9780300115611.001.0001

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Multinational Enterprise Strategies and Development

Multinational Enterprise Strategies and Development

Chapter:
(p.32) Chapter 3 Multinational Enterprise Strategies and Development
Source:
Multinationals and Development
Author(s):

Alan M. Rugman

Jonathan P. Doh

Publisher:
Yale University Press
DOI:10.12987/yale/9780300115611.003.0003

This chapter focuses on the role of MNEs in economic development and examines the business strategies of MNEs as they affect economic development. It includes a discussion of the potential for capital and technology transfer, and the role of MNEs as knowledge-based organizations and in a developing-country absorptive capacity. The chapter explores the potential for developing countries to access capital and technology via the MNE, reviews the factors which facilitate and constrain that access, and discusses the evolving understanding of some MNEs as knowledge-based organizations that organize and deploy knowledge assets in various locations. It assesses the potential for developing countries to benefit from the knowledge-diffusion process and the constraints to their “absorptive capacity,” which may be overcome through MNE knowledge and managerial expertise. The chapter also explores how foreign MNEs enter developing economies, and help stimulate and foster economic development.

Keywords:   economic development, business strategies, technology transfer, knowledge assets, developing economies

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