Some people think developing countries should invite large foreign companies to open offices and factories to grow their economies. Others think the developing countries should keep large companies out and develop local companies instead. Discuss both views and give your own opinion.
In order to let cash flow in, the door must be open. There is an increased awareness among developing countries that they cannot reach their expected economic potentials without attracting equity along with management support from large foreign companies. On the contrary, to keep foreign offices and factories out is to deny the need to court international money which can help plant entrepreneurial seeds for the local economy to grow.
For a developing country, little choice is seen but turn to foreign capitals. Over the past decades many developing countries have sought outside investments in what is called a win-win game benefitting foreign companies as well. The trend of such bilateral cooperation has become even more obvious in a world of globalization. Plenty of economic fruits are being shared by investing companies and local industries alike, and this can be proved by such succesful stories as Asian dragons or tigers, big and small, and the smiling faces of capitalists, far and near. Thanks greatly to foreign offices and factories, the host nations and regions can long enjoy supercharged economic growth based largely on industrial policies supporting exports to rich, industrialized countries. Furthermore, economic prosperity leads to heavy government investments in education and high public and private saving rates, among other benefits.
There is a sense of fear in some people who argue that international investments could backfire in the long run. It is understandable that the policy to keep foreign offices and factories out is not so much a fear of foreign capital as a fear of foreign dominance. This example is from bbs.ieltschn.com Although a developing country is in want of cash to grow its economy faster, it happens that money can just as well ruin national character. As investors search the planet for the highest returns, they are often drawn to places endowed with bountiful natural resources like timbers and mines, particularly where there are weak or ineffective laws or corruptions. Foreign investment-fed growth also promotes western-style consumerism, boosting car ownership, and Big Mac consumption rates towards levels beyond control. Deep at ideological heart, some developing countries have tried to restrict, even resist, foreign investments because of nationalist sentiments and concerns over economic and political influences.
In comparison, it is advisable for a developing country to carefully study where investments come from, as if selecting seeds for plants. The wise words of Genesis encourage people to select every plant yielding seed and every tree which has fruit yielding seed. Good foreign investments may be like good seeds that grow good plants that bear good fruits that in turn yield good seeds. It is up to a developing country whether to keep its garden open to foreign seeds.
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