Gains from Multinationals

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International Trade

Course (61 videos)

Gains from Multinationals

There are numerous benefits of multinational corporations to developing countries. In general, the more capital invested in a country, the higher the wages. These higher wages help develop a more thriving and prosperous middle class. There is also what economists call "agglomeration spillover" effects in which productive multinationals spur productivity and efficiency in other domestic plants as well. Multinationals also build infrastructure, help the local economy access information about foreign markets, and make relevant inputs for production more readily available.

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