This book provides a fresh perspective on the impact of multinational enterprises (MNEs) on host country development, and offers a contemporary and balanced assessment of the influence of multinationals on development. It questions some of the traditional development assumptions and paradigms, arguing that many are outmoded, outdated, and misguided. Drawing from recent research in international business and multinational management, the book brings a more microeconomic, “on the ground” focus to the mechanisms by which MNEs affect growth and development. It is about the relationship between MNE ... More

This book provides a fresh perspective on the impact of multinational enterprises (MNEs) on host country development, and offers a contemporary and balanced assessment of the influence of multinationals on development. It questions some of the traditional development assumptions and paradigms, arguing that many are outmoded, outdated, and misguided. Drawing from recent research in international business and multinational management, the book brings a more microeconomic, “on the ground” focus to the mechanisms by which MNEs affect growth and development. It is about the relationship between MNEs and the poorer countries in the world, sometimes referred to as less-developed or developing economies, which include the poorer parts of Asia, Africa, Europe, and Latin America. Through the process of economic development, many of these countries have both increased their per capita incomes and improved the internal distribution of these incomes, moving into a smaller group of developing economies that are viewed as “emerging.” A key finding in the book is that on balance, MNEs contribute positively to the economic development of poorer and emerging economies—both directly and indirectly. Direct contributions emanate from the role of the MNE in bringing new knowledge assets to developing countries in the form of technology and managerial skills. A second conclusion of the book is that the FSAs of MNEs can help generate new capabilities and business competences in developing economies.