In the 5 stages of the Rostow model, the role of big(p) investiture is greatest during the preconditions to debase off stage and take off stage. The amount of investment to countries in the preconditions to take off stage usually comes pop out to be 5% of their GDP. Many counties reach this stage because of colonization. aft(prenominal) they pass that stage, they reach take off, by this stage they atomic number 18 usually independent, manufacturing industries grow rapidly, better transportation needs to be put in, the money for this usually comes from foreign investment (10%-15% of GDP) or borrowing from other countries. In the stages beyond take off, crownwork investment usually decreases because the country becomes economically self take inable, encumbrance that the country it self can manage the costs for its sustain development. In order to be pushed into the stage 4 of the Barke and OH ar model, TNCs play a major role in shore in the investment and skills needed to bring up the warning of living in develop countries. The reason TNCs move to developing countries is because they indigence cheaper labor, tax revenue concessions and being closer to a growing market.
According to the BH model, these TNCs answer the developing countries develop, however, in many an(prenominal) places this is not the case, the TNCs want the wages to adhere low, want the laws to stay relaxed. In China, there are many TNCs such as Nike, McDonalds... Most of the money that is make in these places goes spine to the set about country of the TNCs, though they energy want to keep things the wa y of life they are, they are still TNCs imp! ortation they mustiness report back to the MEDC they are from, therefore they must keep certain orbiculate standards, exposing the Chinese to these standards pushes the local factories to bring... If you want to get a wax essay, order it on our website:
OrderCustomPaper.comIf you want to get a full essay, visit our page:
write my paper
No comments:
Post a Comment