The Multinational Corporation in the Less Developed Country: The Economic Development Model Versus the North-South Model

Abstract

Researchers, policymakers, and managers interested in multinational corporations should understand two models that guide thought and policy determination in less developed countries. The economic development model emphasizes positive impacts of multinational investment on economies of less developed countries. The North-South model emphasizes negative effects of such investment. The ideological and empirical basis for each model should be understood, as well as the implications for policy decisions.