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What is the function of multinational companies into the promotion of development?
A multinational or transnational (TNCs) company operates within two or more countries across national limitations and are a main force for globalisation. The turnover of huge TNCs exceeds the GDP of a few countries. This implies the impact of a TNC onto an LDC can be important.
TNC investment into an LDC is an illustration of foreign direct investment (FDI) normally as joint ventures along with local firms. Less developed countries may offer favourable terms to attract transnational away from the other less developed countries. Grants and tax breaks decrease the benefits of FDI.
FDI goes mostly to a small number of recipient countries: China 31 percent Brazil 13 percent of total world FDI into LDCs. Simply £2Bn FDI was received by Russia into 2001 year.
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