The book also discusses disadvantages to FDI:
MNCs can, despite providing employment, bring in their own management teams and simply use cheap low skilled workers for production
In some cases MNCs have too much power, because of their size, and receive large tax advantages
Transfer pricing, where MNCs sells their own goods and services from one division of the company to another, in order to take advantage of low tax rates
MNCs may situate themselves in a country where the legislations concerning pollution isn't very strict
MNCs may enter a country to extract a certain resource and leave
In most cases of MNCs buying domestic firms, the owner of the firm is paid with shares in the MNC
The MNC may transfer their porfits out of the country
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