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List three disadvantages economists believe multinationals corporations bring to LDCs. 4. Most of the money earned does not stay in the LDCs5. Most of the jobs in the MNCs are capital intensive and provide few jobs relative to the size of the labor pool in the LDC6. MNCs may pay low wages and may
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1. List three advantages economists believe multinational corporations bring to LDCs 1. They introduce technology
2. They create jobs and training
3. They provide the opportunity for services and industries to develop
2. List three disadvantages economists believe multinationals corporations bring to LDCs 4. Most of the money earned does not stay in the LDCs
5. Most of the jobs in the MNCs are capital intensive and provide few jobs relative to the size of the labor pool in the LDC
6. MNCs may pay low wages and may not offer satisfactory working conditions or environmental protection
3. Give an example of why nations provide aid to less developed nations Humanitarian:
7. To build schools , roads, sanitation systems, and other extending infrastructure
Political and Military:
8. To help allies win wars or keep enemies from extending influence
9. To rebuild war-torn nations so that they can create stable democracies
4. Internal financing Financing derived from the savings of a country’s own citizens
5. Foreign investment Investment that originates from other countries
6. Foreign direct investment(FDI) The establishment of an enterprise by a foreigner
7. Foreign portfolio investment The entry of funds into a country when foreigners make purchases in the country’s stock and bond markets
8. United nations Development Program (UNDP) One of the world’s largest sources of grant funding for economic and social development
9. World Bank The largest provider of development assistance
10. International Monetary Fund(IMF) Originally developed to stabilize international exchange rates, it has expanded it’s role to facilitate development by offering policy advice and technical assistance to LDCs
11. Debt rescheduling Lengthening the time of debt repayment and forgiving, or dismissing, part of the loan
12. Stabilization program An agreement between a debtor nation and the IMF in which the debtor nation agrees to revise its economic policy to provide incentives for higher export earnings and to lower imports