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Words: | Submitted: Mon Jun 19 2006
... collapse of the Soviet system. The disenchantment with socialist ideas and central planning, which had likewise pervaded many developing countries outside the Soviet bloc, created an urgent and widespread need for an alternative set of ideas on how to organize economic and political life (Naim: 2000). MNEs certainly bring money into the developing countries and supply employment, teach skills to work in a factory and so on. One of the characters of the MNEs, Foreign Direct Investments regard as its role replaced from classical trade in global economy. For the MNEs, a number of developing countries are the good business partners who have natural resources, which developed countries do not have, provide cheap labour, have lower tax rates and so on. The Newly Industrialised Countries in South East Asia and Latin America are good examples with their economic growth to explain how the countries achieved development with MNEs. Although ...
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