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