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What is suitable technology?
Technology is suitable when this employs methods which make the best use of accessible resources that is labour-intensive, straightforward techniques low technology in under developed rural regions. Conversely, LDCs frequently prefer capital-intensive projects since, although they give less immediate employment, they assure higher rates of growth.
Several LDCs are considered as having a comparative benefit in manufacturing that is labour intensive and needs low capital for example as textiles and canning fruit are suitable technology.
Why do all multinational automakers choose to use FDI to enter this industry? What are the drawbacks of using other entry modes such as exporting and licensing?
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