Does Direct Investment by Multinational Corporations Benefit Developing Economies?
January 27, 2004 by McKinsey Global Institute Who benefits from multinational company activity in the developing world, and how? Few topics are more intensely debated or create more contrasting emotions than the merits and costs of global economic integration. And few topics demonstrate a greater need for a robust set of facts on which to base an assessment. McKinsey & Company’s Global Institute recently completed a major research project, which finds that the overall economic impact of multinationals’ investment on developing economies has been overwhelmingly positive, despite the persistence of host-country policies that can lead to negative, unintended consequences. Moreover, companies have only started to capture the large cost savings and revenue gains possible from operating in emerging markets. The study’s findings result from a year-long project studying the activities of multinational companies in large developing countries spanning China, India, Brazil, and Mexico across five
Related Questions
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