GEOG-130 Lecture Notes - Lecture 24: Foreign Direct Investment, Multinational Corporation, Walt Whitman Rostow
Document Summary
International trade approach: promoting development by trading products and resources to mdc"s and utilizing the profits to fund internal improvement projects. In recent years, countries such as india have embraced the international trade approach. The biggest problem in promoting development through the international trade alternative is unequal distribution of resources. Like how saudi arabia is highly reliant on oil, because they have a lot of it. Rostow"s development model: five stage model of development, beginning with a country not in development (traditional society) processing to a development stage (age of mass consumption) Industrialization, growing investment, regional growth, political change. Diversification, innovation, less reliance on imports, investment. Consumer oriented, durable goods, flourish, service sector becomes dominant. Foreign direct investment: investment made by a foreign company (transnational corporation) in the economy of another country. Transnational corporation: a company that conducts research, operates factories, and sells products in many countries, not just where its headquarters and shareholder are located.
