Principles Of Macroeconomics

Week 5 – Discussion 2

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Your initial discussion thread is due on Day 3 (Thursday) and you have until Day 7 (Monday) to respond to your classmates. Your grade will reflect both the quality of your initial post and the depth of your responses. Refer to the Discussion Forum Grading Rubric under the Settings icon above for guidance on how your discussion will be evaluated.

The Challenge of Economic Development [WLO: 4] [CLOs: 3, 5]

Imagine you oversee a developing country’s growth and have been approached by a multinational corporation interested in locating in your country. Prior to beginning work on this discussion, read Chapter 16, especially examining Section 16.5, and respond to the following components:

  • Describe a multinational corporation and foreign direct investment (FDI).
  • Identify some benefits and costs for the host country from allowing a multinational corporation to locate there, despite its developing economy.
  • Evaluate whether developmental assistance from world developmental agencies, such as the World Bank or the United Nations, would be preferable to private investment.
  • What would you decide between developmental agency assistance or private investment, such as FDI from multinational corporations? Why? Explain.

Your initial post should be a minimum of 300 words.