![]() ![]() Understanding the factors that govern MNCs’ global strategy thus has important implications for the welfare gains from globalisation and for policy design in developing economies seeking to attract inbound FDI. ![]() Multinational firms also manage increasingly complex operations, basing offshore affiliates in multiple countries and serving multiple markets from each location (e.g. Evidence indicates that foreign direct investment (FDI) generates knowledge transfers to the host country through labour turnover, improved supply of intermediate inputs, and productivity spillovers to domestic firms (e.g. Multinational companies (MNCs) account for two-thirds of international trade and provide a key channel through which capital and technology flow across borders.
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