Developing countries are usually described as followers

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Question

Developing countries are usually described as followers, with respect to developed ones, in the accumulation of technological knowledge. For this reason, they are aften advised to attracted foreign direct investment (FDI) of multinational corporations (MNC) to absorb technological knowledge from abroad.

1. Are FDI from MNCs always source of technological progress for developing countries?

2. Which are the most relevant channels through which technological knowledge could be transferred from MNCs subsidiaries to domestic companies?

3. Think at the different types of Global Value Chain (GVC) governance. Identify which is the best and the worst form of GVC governance for the absorption of technological knowledge from the point of view of a single partner company involved in a GVC.

Reference no: EM133945206

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