Using Angola as an example, evaluate the view that MNCs play a positive role in the development of LEDCs. (25 marks)

Structure: Definition and IntroductionWhat is a Multi National Corporation? Define: Less Economically Developed Country --> characteristics (brief)First Point: Analysis, Application, Evaluation Investment and Positive Multiplier effects: Introduce high levels of capital, highly skilled managers, implement more efficient production processes --> // Nature of Investment --> could solely benefit the MNC with no investment into the local economy, negative externalities --> pollution and waste if not managed properly(Application --> Angola may need investment into public sector instead of private to encourage development)Second Point: Analysis, Application, Evaluation Employment and increased taxation revenues Increases employment opportunities for local people, develops human capital, raises standards of living --> more children can afford to go to school as households have more money Application : A MNC that brought workers in a developed country// Many MNCS bring workers with them, low levels of skill that are not transferable or applicable to local infrastructure, culture clashes in work environment --> lower productivity Final Judgement: Positive/ Negative effect --> // It depends, LR and SR impacts and nature of government

NM
Answered by Nasya M. Economics tutor

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