The Role of Affluent Countries in the Economies and Capital Farming of Underdeveloped Nations

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THE ROLE AFFLUENT COUNTRIES PLAY IN THE ECONOMIES AND CAPITAL FARMING OF UNDERDEVELOPED NATIONS Presently, there are over 35,000 multinational corporations (MNC) worldwide, controlling over 15,000 foreign subsidiaries and accounting approximately one-third of the global production. The developing countries that received the most multinational investment are those perceived to have the utmost development growth. They are commonly identified as newly industrialized countries and consist of Asian countries like China, Singapore, Malaysia, Thailand and Latin American countries like Mexico, Brazil and Argentina. The ten largest recipient of foreign direct investment receive nearly 95% of the totality, while the entire African countries set jointly obtain less than 4%. The poorest 50 countries of the world among them obtain less than 2% (Boyzk 2009). At first, the majority of MNC investment in developing countries was in mines and agricultural estates. These days mining accounts for only 6%, with manufacturing and services accounting for more than half and Oil & Gas for about one-third. The cost of the total MNC globally is expected to be over $1.5 trillion of which about one-third is in the developing countries (Schermerhorn 2009). In this twenty-first century, multinational companies have turn into central institutes of developing nations. The government of a country must be concerned about food security, industrial production and other supplies that the country requires for

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