The Impact Of International Corporations On A Nation's Economy

1973 Words Oct 22nd, 2014 8 Pages
“Tell me, is there some society that doesn’t run on greed? What is greed? Of course, none of us are greedy, it is only the other fellow that’s greedy. The world runs on individuals pursuing their separate interests.” - Milton Friedman (2002)
A common trend within developed and developing countries is foreign direct investment (FDI) as a major source of capital. What differs is the effect it has for the nation’s people. The current economic and technological development, its government policy and a nation’s labour force all alter the potential outcomes for a nation. This report will examine the effects of international corporations becoming involved in the discovery and extraction of oil reservoirs in Nigeria and compare it to the results in Norway. It will explain how the stability of the governments affect the long-term outcomes. Norway is a prospering country, its people are ranked as the second happiest in the world, and its government is seen as trustworthy and influent. Nigeria has a turbulent past which the discovery of oil has exasperated. These issues are recognised by the World Bank who have responded by labelling Nigeria as a ‘fragile state’ due to its risk of armed conflict, epidemic diseases and failed governance. (World Bank, 2014) It appears that when a country is faced with the influx of foreign investors, it is the strength of the government that will determine who controls the power.

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