Assume you are hired by the United Nations Development Program as an economist.

Question

Assume you are hired by the United Nations Development Program as an economist. Your mission is to travel to Malaysia, formerly a major producer and exporter of rubber and cocoa. Because of massive private foreign investment by multinational corporations, Malaysia has become a major producer and exporter of electronic equipment in Southeast Asia. In 2016, the Malaysian economy has performed very well with 4.2 percent real GDP growth rate and GDP per capita (PPP) of $27,300. However, it has accumulated $195 billion in external debt and $127 billion in direct foreign investment. what are the pros and cons of private foreign investment? And to resolve these pros and cons by evaluating the key disputed issues about the role and impact of multinational corporations in this country?

Explanation / Answer

As a economic development expert firstly it tells about the GDP and the Malaysian economy has performed very efficiently with 4.2 percent and this will help him accumulated in the external debt as well as in the direct foreign investment.

Now, The Argument for and Against for the Private Foreign Investment is as:

Argument For Private Foreign Investment

Now Argument Against the Private Foreign Investment

The key disputed issues about the role and impact of multinational corporations in this country includes:

1. The International capital movements.

2. Displacement of the indegenous production.

3. To which extent the technology is being transfer.

4. To find the appropriateness of the the technology transfer.

5. What are the different pattern of the consumptions.

6. As they develop the social structure and stratification.

7. Finally, the distribution of the income and the dualistic development.

These are the major key disputed issues about eh impact of MNC's in this country.

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