Third World Multinationals

摘要

This text addresses direct investments emanating from developing countries, and considers why companies decide to relocate abroad. Advantages of relocation are examined and include low overhead, use of local resources and the countries' rapidly changing economies. Certain countries are shown to have served as homes for a large portion of the firms: the investments have originated primarily in South and Southeast Asia and in Latin America. Whether the amounts invested measure the value to the host country of the technology that is transferred is discussed and it is concluded that many foreign investors from developing countries transfer a technology that is more appropriate to the needs of their host countries than the technology that investors from the industrialized nations transfer. It is suggested that the strategies of firms from developing countries emphasize products that may be suited more to the needs of poorer residents than are products that are produced by investors from richer nations. Finally, technology is viewed as a competitive weapon, and its characteristics are delineated.