TITLE

MULTINATIONALS AND DEVELOPING COUNTRIES: MYTHS AND REALITIES

AUTHOR(S)
Drucker, Peter F.
PUB. DATE
October 1974
SOURCE
Foreign Affairs;Oct74, Vol. 53 Issue 1, p121
SOURCE TYPE
Periodical
DOC. TYPE
Article
ABSTRACT
This article discusses myths and reality about the importance of multinationals for developing countries and vice-versa. Four assumptions are commonly made in the discussion of multinationals and the developing countries. These assumptions largely inform the policies both of the developing countries and of the multinational companies. Yet, all four assumptions are false. A few of these assumptions are; the developing countries are important to the multinational companies and a major source of sales, revenues, profits and growth for them; foreign capital, whether supplied by governments or by businesses, can supply the resources, and especially the capital resources required for economic development of the country. In the first instance, extractive industries have to go wherever the petroleum, copper ore or bauxite is found, whether in a developing or in a developed country. But for the typical twentieth-century multinational, that is a manufacturing, distributing or financial company, developing countries are important neither as markets nor as producers of profits.
ACCESSION #
4854105

 

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