The effects of foreign direct investment (fdi) on the environment in developing countries are now assessed quite differently from in the past



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ImpactofMultinationalCorporationsonDevelopingCountries

5.2.1.4. Technology/R&D: Technology development and work processes improvement differ greatly in developing countries, and even in some cases between regions. For example, Bangkok or the South of Thailand is more developed than some Northern areas. MNCs contribute greatly in providing the foundation for technological development. A vital resource gap filled by the MNCs, as proponents say, is technology. The desire to obtain modern technology is perhaps the most important attraction of foreign investment for developing countries. MNCs allow developing states to profit from the sophisticated research and development carried out by the multinationals. They make available technology that would otherwise be out of the reach of developing countries (Spero & Hart, 2010). MNCs train local staff, stimulate local technological activities, and transfer technology throughout the local economy. Accordingly, technology improves the quality of production and encourages development (Page, 1994).

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