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Evaluate the role of multinational companies in helping developing countries to achieve economic growth/development.
Explanation of growth; enhance in GDP per time period
Explanation of development; growth and wider spread of income, general enhance in standard of living
Positive effects on development of MNCs
a) A way to fill the savings gap (possible reference to Harrod-Domar model)
b) Both FDI and portfolio investment in fact makes job opportunities
c) Increases the capital stock of the country
d) Increase in AD and thus GDP (HL: possible multiplicative effects)
e) Subsidiary companies generate possible inward flows of profits from abroad
f) It is possible that MNCs transfer not only capital, but also technology, knowledge and experience to developing countries
optimal contracts under symmetric information
Capital make large scale production and greater degree of specialization possible. Thus with capital accumulation the advantages of large scale production and specializations are o
when the demand function is 2Q-24+3P=0,find the marginal revenue when Q=3.
its elements , scope calculation
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